{"id":13563,"date":"2023-05-25T07:21:34","date_gmt":"2023-05-25T11:21:34","guid":{"rendered":"https:\/\/ifintechworld.com\/news\/sp-600-vs-sp-400-vs-sp-500-future-looks-bright-for-mid-and-small-caps-nysearcaivoo\/"},"modified":"2023-05-25T07:21:35","modified_gmt":"2023-05-25T11:21:35","slug":"sp-600-vs-sp-400-vs-sp-500-future-looks-bright-for-mid-and-small-caps-nysearcaivoo","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=13563","title":{"rendered":"S&P 600 Vs S&P 400 Vs S&P 500: Future Looks Bright For Mid And Small Caps (NYSEARCA:IVOO)"},"content":{"rendered":"
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Thesis<\/h2>\n

The first time I read about the outperformance of small-cap indices was in A Man for All Markets by Edward Thorp. Since then, I have had the S&P 400 (NYSEARCA:IVOO<\/span>) and S&P 600 (NYSEARCA:VIOO<\/span>) in my portfolio, and although I do stock-picking most of the time, I still have a portion of my portfolio allocated to ETFs.<\/span><\/p>\n

And in the next few chapters I will show you why I think now is a good time to build a position in the small and mid caps, rather than buying their big brother, the S&P 500 (VOO). Given their current historically low P\/E and their historical outperformance after economic difficulties, they are well placed to outperform the S&P 500 over the long term, as they have done in the past.<\/p>\n

Analysis<\/h2>\n

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\"Total<\/span>
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SP Global<\/p>\n<\/figcaption><\/figure>\n<\/p>\n

Here we can see that the three indices were almost identical until the end of 2019, when the outperformance of the S&P 500 began and was even more pronounced in 2020 and thereafter.<\/span><\/p>\n

This has resulted in the following 10-year returns on an annualized basis:<\/p>\n