---
title: "Why Invest in U.S. Small Caps?"
url: https://accuvestblog.com/2015/02/18/why-invest-in-u-s-small-caps/
description: "Falling energy sector profits and a rising dollar will be less of an earnings headwind for small-cap stocks given lower energy sector exposure and a greater proportion."
published: 2015-02-18
updated: 2015-02-18
---

# Why Invest in U.S. Small Caps?

Published 2015-02-18

February 18, 2015 · by [James C](https://accuvestblog.com/author/agajcalhoun/) · Filed under [Investing Ideas](https://accuvestblog.com/category/investing-ideas/)

- Falling energy sector profits and a rising dollar will be less of an earnings headwind for small-cap stocks given lower energy sector exposure and a greater proportion of sales derived domestically. (Small-caps derive 18–20% of earnings outside the US compared to 30–35% for large-caps.)
- Historically, when small-cap earnings estimates are rising at a faster rate than earnings estimates for large-caps, small-caps have outperformed.
- Following last year’s under-performance, small-cap valuations (relative to large-caps) are now attractive relative to the last five years.

Please use the following link for more investment insights on US Small Caps: **Issue attachment (not archived)US Small Cap Equityus-small-cap-equity.pdf**

Tagged with [outperformance](https://accuvestblog.com/tag/outperformance/)