Emerging markets small caps perform best, says Standard & Poor's

Small-cap emerging markets stocks have outperformed large- and mid-cap stocks by significant margins in recent years, according to Standard & Poor's.

Small-cap profits get bigger faster

As emerging markets entrench themselves in global portfolios, investors are increasingly favouring small-cap stocks at the expense of large- and mid-caps, according to index provider Standard & Poor's (S&P).

“Small-caps have outperformed large- and mid-cap stocks by significant margins,” says Alka Banerjee, vice-president of global equities at S&P Indices. “Small-cap stocks are less susceptible to sluggish global demand; they are less affected by global fluctuations, and they are also more