Companies with market caps of $4 billion or less represent the majority of U.S. Stocks. Yet many investors consider small caps riskier than large- cap equities and remain underexposed to this asset class.
We believe small- cap stocks can offer investors a larger opportunity set than large caps. They have delivered attractive historical long-term returns and outperformed other major asset classes in times of low-but-rising interest rates, such as the current environment. Small caps tend to be more closely tied to the U.S. economy and may benefit from an improving economic outlook.
Investors should consider adding small- cap stocks as a core portfolio allocation.
Download the full infographic.
Special Risks: Small-sized company stock is typically more volatile than that of larger company stock. It may take a substantial period of time to realize a gain on an investment in a small-sized company, if any gain is realized at all. Diversification does not guarantee profit or protect against loss.
These views represent the opinions of OppenheimerFunds, Inc. and are not intended as investment advice or to predict or depict performance of any investment. These views are subject to change based on subsequent developments.