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U.S. Small Cap

Re-introducing the diversification potential of U.S. small caps

Why small caps now?Learn more about our funds

Why Aberdeen Investments for U.S. Small Caps

Experienced team

The team’s high conviction, active approach has delivered outperformance over time, with strong risk-adjusted returns.*

Global perspectives, local focus

Our global presence helps us make more holistic decisions; with an engaged U.S. team conducting hundreds of meetings per year.

Active insights delivered thoughtfully

Active approach focused on identifying quality small cap companies; and implementing our best ideas with conviction.

* Source: Aberdeen, As evidenced by our track record compared to the relevant benchmark

Why U.S. Small Caps

Portfolio diversification

Adding U.S. small caps to a portfolio may help reduce volatility, as they have different market dynamics compared to other asset classes.

Growth potential

U.S. small cap companies are often at the forefront of new technologies and evolving trends, offering potential for higher returns.

Active opportunity

With fewer analysts covering U.S. small cap companies, the asset class is ripe for an active management approach.

Why U.S. Small Caps Now

Relative valuations for U.S. small caps are near all-time lows

Chart 1. U.S. Small-Cap relative to U.S. Large-Cap forward price/earnings (PE) ratio

Source: FactSet, Bloomberg, abrdn, 31 December 2024. Past performance does not predict future returns. For illustrative purposes only. Projections are offered as opinion and are not reflective of potential performance. Projections are not guaranteed and actual events or results may differ materially. Note: Excluding negative earnings

Cyclical trends for the small cap asset class are favorable

Chart 2. U.S. Small-cap/U.S. Large-cap (1931 to 2024)

Source: Furey Research Partners, FactSet, 31 August 2024. Past performance does not predict future results

M&A activity has accelerated for small cap companies

Chart 3. M&A activity accelerating in U.S. small caps

Source: FactSet, Bloomberg, FTSE Russell, Jefferies, June 2024 Note: Data is annual deals in the Russell 2000; 2024 is through December 31st 2024

Learn more about our Funds

abrdn Focused U.S. Small Cap Active ETF

Ticker: AFSC

More Details

abrdn U.S. Small Cap Equity Fund

Ticker: GSXAX

More Details

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