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Episode 043: Eduardo Repetto on factor investing, host Rick Ferri

Bogleheads On Investing Podcast

CHAPTER

The Decline of the Small Cap Premium

The proliferation of small cap index investing, in other words, became much, much easier to invest in a big massive mega portfolio of small cap stocks. And I believe that caused this factor to decay to the point where there really isn't a big premium anymore. The fact that people observe that small caps up to 81, I think it was, have a premium, that can have been a random outcome.

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