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Small/Micro cap indexes.


flesh

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I don't know if this is too obvious but the S&P 600 is my small-cap go-to.  I can't remember the details but it's considered superior to Russell 2000 as it filters out some of the 'bad' companies.  Yet the 2000 is much better known.

 

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You could also look at mid-caps.  VO (vanguard mid-cap etf) has actually outperformed their small cap etf's since inception in 2004.  Arguably the mid-cap's are more likely to survive an extended downturn and are slightly better able to lobby for a bailout when they get into trouble.  Currently VO is down more than the S&P500 but less than most small cap indices.  I think it's about 40-45% upside to 52 week high.

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