Small Cap Value: the underrated return booster?

Two of the most-researched return factors are size (small companies) and value (cheaply valued companies). Combined, “Small Cap Value” is a classic tilt on top of a broad core.

Instead of theory, look at the real funds with live holdings:

• iShares MSCI World Small Cap – the small-cap end of the world index
• iShares Edge MSCI World Value Factor – the value tilt

Open each to see how different the holdings look versus a plain MSCI World – far less mega-cap tech, more industrials and financials.

The catch

Factors go through long dry spells. Small Cap Value can lag the market for years before it pays off – only tilt if you can hold through it. Keep a broad core first.

Information only, not investment advice.