Small-Cap Quality Stocks, Strong Performers

Stronger Profitability, Stronger Returns? Companies in the Russell 2000 with the strongest average return on assets (ROA) in the past 5 years were among the best performers.

Companies by Return on Assets (ROA):

  • 1st Quartile companies generated an average annualized return of ~13% over the last 5 years
  • 4th Quartile companies by ROA generated an average annualized return of ~4% over the last 5 years.

Source: Bloomberg Finance L.P. Data as of 12/31/2021
1st Quartile: Contains the top 25% of companies in the Russell 2000 based on average 5-year return on assets. 2nd Quartile: Contains the top 25%-50% of companies in the Russell 2000 based on average 5-year return on assets.

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