It is well known that companies with smaller market capitalizations generate higher returns over the long term.
This Investment Guide for European small cap stocks will help you navigate between the peculiarities of the EURO STOXX® Small, MSCI EMU Small Cap, MSCI Europe Small Cap, STOXX® Europe Small 200 and ETFs tracking them.
It will allow you to find the most suitable European small cap ETFs for you by ranking them according to your preferences.
The EURO STOXX® Small Index comprises small sized companies from the underlying EURO STOXX®Index.
EURO STOXX® Index is a subset of STOXX® Europe 600 Index comprising only the companies from countries in the Eurozone.
Small caps are determined as the bottom 33% companies in the underlying index ranked by their market capitalization.
The stocks passing the selection screen are weighted in the index by the free float market cap.
The MSCI EMU Small Cap Index captures small cap stocks across the 10 developed countries in the Eurozone. lowest 14% (by free float market cap of companies) of the free float-adjusted market capitalization of the MSCI EMU Investable Market Index.
The index is based on free float market capitalization.
The MSCI Europe Small Cap Index includes small cap stocks from 15 developed countries in Europe. bottom 15% (by free float market cap of companies) of the free float-adjusted market capitalization of the European developed countries.