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

Bogleheads On Investing Podcast

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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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