Are international small caps good investments?
Special Report

Going Small Overseas—Why It Makes Sense

July 24, 2019
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While savvy investors know there’s no free lunch, sometimes a good deal can be hiding in plain sight. That’s why we think it’s worth considering an allocation to smaller company stocks in foreign markets.

Our investment team has found that stocks of smaller foreign companies have, with few exceptions, delivered stronger returns—without added risks—than those of larger foreign companies over the last 20-plus years. In this Adviser Investments Special Report, we focus on two main points: The opportunity for active managers to outperform in the foreign small- and mid-cap arena (s/midcaps) and the attractive risk-return profile of these stocks over time.

In this special report, available exclusively from Adviser Investments, you’ll learn why investing in smaller companies based in foreign countries might make sense for you. Among the factors:

  • Companies operating at a lower scale tend to be overlooked and under-researched, making them more attractive to active managers
  • Evidence shows that even an average foreign s/mid-cap manager could be a better bet than an index fund
  • Foreign s/mid-caps pay dividends more often than U.S. companies, helping them hold up better in bear markets

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