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96 Don’t Make Me Say I Told You So

Large-cap vs Mid-cap vs Small-cap Stocks

Mid-caps have outperformed over the long term Large-Cap Stocks
Mid-Cap Stocks
Annualized performance (%)
Small-Cap Stocks
25

20

15

10

5

0
1 year 5 years 10 years 15 years 25 years
Source: FactSet, as of 12/31/17. Small-cap stocks are represented by the Russell 2000 Index, which tracks the performance of 2,000 publicly
traded small-cap companies in the United States. Mid-cap stocks are represented by the Russell Midcap Index, a market-capitalization-weighted
index representing the smallest 800 companies in the Russell 1000 Index. Large-cap stocks are represented by the Russell 1000 Index, which
tracks the performance of 1,000 publicly traded large-cap companies in the United Sates. It is not possible to invest directly in an index.

Summary

► Small-cap stocks are stocks of newer,-less established

companies with a market capitalization averaging
between $100 million and $2 billion. Mid-cap stocks are

stocks of mid-sized companies that are established in
their industry, with a market capitalization averaging

between $2 billion and $10 billion. Large-cap stocks

Chapter 3: You Must Have Growth In Your Portfolio