The Declining Quality of Small Caps
September 19, 2020 at 09:00 AM EDT
By Matt Wagner, CFA, Senior Research Analyst, WisdomTree Investments The outperformance of higher-quality small caps relative to lower-quality companies has been well documented, notably in AQR’s 2015 paper, “Size Matters, If You Control Your Junk.” The intuition behind this anomaly is...