NBK Wealth Thought Leadership: Small-Cap Equities as an Asset Class: A Comprehensive Overview
Small-cap equities are a distinct asset class, typically comprising publicly traded companies with market capitalizations ranging from $250 million to $2 billion. While they offer significant growth potential and diversification benefits, they also carry higher volatility, liquidity constraints, and greater risk compared to large-cap equities. These companies tend to be smaller in scale, often with younger business models and a strong focus on growth opportunities. They frequently operate in niche markets, receive less analyst coverage, and experience lower trading volumes relative to their larger counterparts.
