Most portfolios are more U.S.-heavy than investors realize. International small cap is one of the most overlooked gaps—and conditions for closing it are improving.
International small cap equities make up a significant portion of the global market, yet many investors have minimal (or no) exposure to this asset class. However, many of the challenges international small caps have faced in recent years have abated, and signs suggest the asset class could be poised to continue the strong performance experienced in 2025.
A note about risk
All investing involves risks of fluctuating prices and the uncertainties of rates of return and yield inherent in investing. You could lose money on your investment and any of the following risks, among others, could affect investment performance. The following principal risks are presented in alphabetical order which does not imply order of importance or likelihood: China Investing Risks – Investing through Stock Connect; Company; Convertible Securities; Credit; Currency; Derivative Instruments; Environmental, Social, and Governance (Equity); Environmental, Social, and Governance (Multi-Manager); Environmental, Social, and Governance (Qualitative); Foreign (Non-U.S.) Investments/ Developing and Emerging Markets; Index Strategy (Fund); Growth Investing; Interest Rate; Investment Model; Liquidity; Market; Market Disruption and Geopolitical; Other Investment Companies; Real Estate Companies and Real Estate Investment Trusts; Securities Lending; Small-Capitalization Company; Value Investing. Investors should consult the Fund’s Prospectus and Statement of Additional Information for a more detailed discussion of the Fund’s risks.