Small- and Mid-Cap ETFs Beat Large-Cap Benchmarks but Carry Different Risks
Over the year ending Oct. 6, 2026, SCHA returned 18%, beating VB at 14% and VO at 11%. The article compares small- and mid-cap ETFs that cover companies excluded or underweighted by large-cap funds, noting different risk profiles and historical drawdowns.
For the year ended Oct. 6, 2026, SCHA returned 18%, ahead of VB at 14% and VO at 11%. SCHA’s May 31, 2026 filing showed about $22.8 billion in net assets, with ATI representing roughly 0.5%, a sign of broad diversification across smaller companies.
VO focuses on mid-caps, while VB and SCHA cover small-caps. Over five years, VO returned 44%, topping the group; SCHA trailed despite its one-year lead. During the 2020 downturn, SCHA lost 32%, versus VOO’s 20%, highlighting greater drawdown risk.
This comparison may influence how individual investors, retirement savers, and advisers weigh small- and mid-cap exposure. Strong one-year returns could draw attention to overlooked companies, potentially affecting capital flows and valuations. However, sharper historical drawdowns may make volatility tolerance a key factor, so outcomes could differ for those with shorter versus longer time horizons.