Why US Smaller Companies Can Outperform

The US stock market is a notoriously difficult one for active fund managers to beat, but US smaller companies may be worth a closer look 

Annalisa Esposito 28 October, 2019 | 10:19AM

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The US stock market is a notoriously difficult one for active fund managers to try and beat. The breadth of different companies comprising the S&P 500 make it tough to outperform, particularly in recent years as the tech giants at the top of the index have soared.

But Morningstar Direct data suggests that investors looking to beat the market may be best turning their attention to smaller US companies. Over a five-year period, many US Smaller Companies funds have performed better than their benchmark. 

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About Author

Annalisa Esposito  is a data journalist for Morningstar.co.uk

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