Sentences with phrase «than large cap stocks»

Taken at face value, this graph suggests that small cap stocks consistently provide better return than large cap stocks, albeit with high volatility (standard deviation in the graph).

Historically speaking, companies with small market caps have exhibited greater stock price volatility than large cap stocks.

This makes sense as they are growing at a faster rate than large cap stocks.

Over the long term, small capitalization stocks have produced higher returns than large cap stocks but in exchange for more volatility.

Moreover, quality small caps can be less volatile than the large cap stocks.

Mid Cap - Mid Cap is stocks that are more risky than large cap stocks and less risky than small cap stocks.

Investments in mid - and small - cap companies typically have higher risk characteristics than large cap stocks and may be subject to greater price fluctuations than large - cap stocks.

Put simply, if small cap stocks are viewed by investors as riskier and that risk is being priced in, you should expect to see, other things remaining equal, higher expected returns on small cap stocks than large cap stocks.

It will be hard to accept, if I directly conclude that quality small caps and mid caps can offer more safety, better dividend yield and obviously better return than large cap stocks across any market cycle (bull and bear market).

In our example, SMDV is composed of 57 small cap stocks, which trade less frequently than large cap stocks.

Misconceptions regarding small cap investing is rooted so deep that many investors may not accept the fact that even small caps and mid caps can offer more safety, better dividend yield and obviously better return than large cap stocks.