Watch episode on youtube: https://youtu.be/4pq9WMwZXTs

Published June 2025. In this episode of "What's the Risk?" we take a look at the historic performance of the S&P/ASX Small Ordinaries Index. Some people would know ETFs that seeks to track the performance of this index as Blackrock's ISO and State Street's SSO.

Small companies have long been understood to outperform larger companies, due to higher risk, but in Australia his index has shown a consistent track record of underperformance against larger counterparts. We discuss why that might be and Peter highlights a conversation he had with Ken French that adds some further understanding. 

This is history and doesn't automatically mean the future performance will be as poor, so will you write off Australian small caps? 

Want to learn more about investing? Get our Book: https://www.amazon.com.au/Your-Investment-Philosophy-Protecting-Fraudsters-ebook/dp/B0BCPJ8BGC/  

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S&P/ASX Small Ordinaries Index (Total Return) April 2000 - Present: S&P/ASX Small Ordinaries Index (Total Return), Source: S&P June 1992 - March 2000: ASX Small Ordinaries Accumulation Index, Source: ASX January 1991 - May 1992: ASX Small Ordinaries Index (Pre-Restructure)

January 1980 - December 1990: ASX Ex-50 Leaders Simulated Index, Source: John Nolan Associates

Returns in AUD Copyright 2025 S&P Dow Jones Indices LLC, a division of S&P Global. All rights reserved. 

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