Seeing Through the Small-Cap Index Illusion

In this month's SmallCap Informer, editor Doug Gerlach explains why the S&P 600 tells the real story.

When financial news anchors announce the performance of “small-cap stocks,” they almost universally point to the Russell 2000 Index.

To the untrained eye, the Russell 2000 is accepted as the definitive barometer of small-company America. Yet, for disciplined fundamental investors, relying on the Russell 2000 creates a dangerous index illusion.

Beneath its surface lies a glaring flaw... Read more.