What if you invested monthly in US small caps (Russell 2000) for 15 years?
Test the 'small caps mean higher returns' assumption against a 15-year window where they lagged large caps yet fell harder.
Investment conditions
Asset · US Small Caps -- Russell 2000 (IWM)
Method · Recurring monthly investment
Period · 2011-07-01 ~ 2026-07-01
Amount · $222 / month
As of · 2026-07-01
Key metrics
These results do not reflect taxes. Based on historical data.
Risk & recovery
As important as returns. This service does not hide maximum drawdown or loss periods.
Maximum drawdown (MDD)
-40.4%
Largest drop from peak
Longest loss period
4months
Months in loss: 5
Recovery period
5months
Growth over time
Invested principal (dashed) and portfolio value (solid). Values below match the calculation.
Total invested $40,222 → Final value $97,854 (+143.3%), Maximum drawdown (MDD) -40.4%
Why this period and asset
IWM tracks the Russell 2000, about 2,000 US small-cap stocks. In theory small caps carry more risk but offer a long-run excess return (the small-cap premium). Yet the 15 years since July 2011 were dominated by large-cap tech, and small caps often lagged large caps and the total market. Their volatility stood out especially in the 2020 COVID crash and the 2022 rate-hike decline.
Interpreting the result
This window shows that 'small caps are riskier so they pay more' does not always hold. In a large-cap-led market, small caps can actually lag, while still often showing a larger maximum drawdown and longer loss and recovery periods than large caps. In short, more risk does not guarantee more reward. The premium is a long-run-average idea in theory; over a specific 15-year window it can invert.
Caveats & limits
A simplified calculation without taxes, fees, or currency effects. It reflects a specific large-cap-led phase, so the small-cap ranking can differ in other periods. Small caps are volatile with large drawdowns, and as a dollar asset, returns in another currency depend on exchange rates.
Data sources & limits
- Price data source: Yahoo Finance / FinanceDataReader
- Collected on: 2026-07-23
- Effective trading date: 2026-07-01
- Price basis: Cierre ajustado (refleja dividendos y desdoblamientos de acciones)
- Trading fees and taxes are not reflected — figures are pre-tax.
- Based on historical data; does not guarantee future returns.
Frequently asked questions
Don't small caps normally beat large caps?
A small-cap premium is discussed as a long-run average in theory, but in a large-cap-led stretch like these 15 years, small caps sometimes lagged.
Isn't more risk supposed to mean more return?
Higher volatility does not guarantee higher return. In this window, small caps sometimes fell harder yet still lagged in performance.
What is the Russell 2000?
An index of about 2,000 US small-cap stocks, tending to have higher volatility and drawdowns than large-cap indices. IWM tracks it.
Related scenarios
📋 Los resultados se basan en datos históricos; las rentabilidades pasadas no garantizan rentabilidades futuras.
📋 Este servicio se ofrece con fines educativos para ayudarte a entender la inversión, no como asesoramiento de inversión.