Chris Clark Talks about Small-Cap ETFs in Pensions & Investments—Royce
article 03-15-2024

Chris Clark Talks about Small-Cap ETFs in Pensions & Investments

CEO Chris Clark discusses why small-cap ETFs create capacity challenges and how the asset class looks well positioned for market leadership.


On 3/8/24, Royce CEO Chris Clark was among the three investment professionals interviewed by Ari I. Weinberg for a feature in Pensions & Investments, “Investors pondering if time is right for small-cap ETFs” in which Chris discusses the capacity challenges faced by small-cap ETFs, saying, “Liquidity issues make it difficult for an asset manager to manage assets effectively — it’s not easy to have permanently open products such as ETFs in the asset class. Transparency is an understandable issue for many investors, but the much lower levels of liquidity make full transparency harder in small cap.”

Read the article here.

Chris went on to say that he sees the market setting up for above-average performance for high-quality small caps, particularly those with low debt and high returns on invested capital. He offered his view that small-cap would outperform large-cap in the current climate: "With rates stabilizing and the U.S. economy growing, the potential for mean reversion potential appears very high.”

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Mr. Clark’s thoughts and opinions concerning the stock market are solely his own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

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