I’m Keith DeGreen and this is your Investors Minute.

While other U.S. sectors have reached new highs this year, U.S. small-cap companies have lost about 5%. The most popular small-cap Exchange-traded fund (ETF) has the ticker, IWM.

Definitions vary, but a “small cap company” generally has a market capitalization of between about $300 million to $2 billion. “Market capitalization” is the dollar value of a company’s outstanding stock.

Small caps tend to make more of their sales here in the U.S., and they are often more reliant on financing. They also tend to have much higher percentage growth projections. That’s their appeal; and that’s why they can be pricey. You are investing in growth.

I would not be surprised to see small caps begin to outperform into the first half of 2015. But check your personal suitability and keep your allocation modest.

I’m Keith DeGreen, and this has been your Investors Minute.

FEE-ONLY DeGreen Capital Management. Pioneers in low-cost exchange-traded fund investing. Irvine: 949-333-4550. Scottsdale: 480-609-9900. www.DeGreen.com. Minimum portfolio requirement $1,000,000.

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