OUSM: Quality, A Better Approach to Small-Cap Investing

With U.S. markets digesting disinflation with extreme valuations and concentration risk among mega-cap stocks, U.S. small-cap stocks may provide an attractive entry point relative to U.S. large-caps as we head into 2025. Importantly, a focus on quality companies within a small-cap allocation is paramount to help protect against the drawdowns that sometimes occur in small-cap stocks during periods of market volatility.