2020 Is Turning Into The Year Of The Small Investor

2020 Is Turning Into The Year Of The Small Investor
Andrew Rummer

over 3 years ago1 min

Mentioned in story

  • Smaller investors – also known as “retail” investors – appear to be trouncing the returns of the most sophisticated professionals so far this year.
  • Stocks widely held by smaller traders – tracked by the Goldman Sachs Retail Favorites Index – have climbed much more than hedge funds’ top picks – tracked by the Guru Index exchange-traded fund. (The chart shows the latter divided by the former, so a declining line shows retail outperforming pros).
  • The kinds of high-profile, fast-growing companies so beloved by retail investors lately – like carmaker Tesla and iPhone producer Apple – have surged in 2020. Meanwhile, hedge funds’ more conservative strategies haven’t fared well, reversing the trend observed for most of 2019.


All the daily investing news and insights you need in one subscription.

Disclaimer: These articles are provided for information purposes only. Occasionally, an opinion about whether to buy or sell a specific investment may be provided. The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment advisor.

/3 Your free quarterly content is about to expire. Uncover the biggest trends and opportunities. Subscribe now for 50%. Cancel anytime.

© Finimize Ltd. 2023. 10328011. 280 Bishopsgate, London, EC2M 4AG