The Great Stock Story of 2013 May Be Different Than You Thought

The big story of 2013, as told in the news, was the performance of the S&P500 (up about 32% for the year). But the real success story of 2013 is the performance of small company stocks or what are called micro-cap stocks. The Dimensional micro-cap fund (ticker symbol DFSCX) rose a breathtaking 45% in 2013. The tremendous returns for very small stocks should come as no surprise. The return premium for small stocks persists due to the simple relationship between market risk and market return. Small company stocks have greater expected risk and hence greater expected return. Investors at Rogowski Wealth Management hold portfolios that are tilted towards these areas of greater expected return. Contact Bryan to find out how you can improve your retirement prospects using proven investment strategies.


Chart assumptions: dividends automatically reinvested. No advisory fees. No transaction costs. Fee for the Dimensional micro-cap fund was 0.52% (52 cents for every $100 dollars).

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