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M*: The Most Popular Small-Cap Index Isn’t The Best

FYI: Conventional wisdom holds that the small-cap stock arena is a more-fertile hunting ground for active managers than large-cap stocks, as smaller firms tend to be less widely followed, which makes them more likely to be mispriced. That may be true, but as the most recent installment of Morningstar’s Active/Passive Barometer shows, most active managers still have a hard time beating their index counterparts.
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