FYI: Over the long haul, small-cap stocks outperform their large-cap peers. Over the past 20 years, the widely followed Russell 2000 Index has delivered average annualized returns of 6.6% compared to 4.6% for the Russell 1000, but volatility has been higher for the small-cap Russell 2000.
“And while US small cap returns look relatively good for investors in hindsight over the past two decades, these returns have come with much higher relative volatility,” according to FTSE Russell. “The Russell 2000 had a 19.5% annualized standard deviation over the last 20 years as compared to 14.8% for the Russell 1000 and the Russell 2000 had a maximum drawdown of 54%.”
Innovator Capital Management, LLC, the exchange traded funds issuer behind a series of “buffered” ETFs, among other funds, recently added to its buffered roster with the debut of the Innovator Russell 2000 Power Buffer ETF (cboe:KOCT).
Regards,
Ted
https://www.marketwatch.com/story/a-new-way-to-minimize-small-cap-volatility-2019-10-21-10463051/printM* Snapshot KOTC:
https://www.morningstar.com/etfs/bats/koct/quote