When I separated the four components of HSWR50CT, I ended up
favoring Small Capitalization stocks.
Still, traditional studies have
favored small capitalization value stocks.
Not exact matches
The Fund invests in large -
capitalization companies that may underperform other stock funds (such as funds that focus on
small - and medium -
capitalization companies) when stocks of large -
capitalization companies are out of
favor.
Focuses on less efficient areas of the equity market including
small capitalization and out - of -
favor securities, and securities with limited analyst coverage
The fund is also
capitalization weighted, meaning that it will
favor large cap stocks and give less attention to
small cap names.
However, this screen tends to
favor firms that can't raise debt —
smaller capitalization companies and firms with volatile earnings.
Owners of a
small capitalization company might
favor higher dividend yields for the reasons stated.