Small cap stocks are often seen as volatile and high risk—but they’re also a powerful engine of long-term wealth creation. The key is separating true growth compounders from speculative names.

That’s exactly what the MarketGrader U.S. Small Cap Core Index does.

Targeting Quality at the Lower End of the Cap Spectrum

This index applies MarketGrader’s time-tested GARP + Quality methodology to uncover high-performing small cap companies—those with the financial strength, profitability, and discipline to endure and thrive across market cycles.

Index Construction

• Universe: U.S. companies in the small cap segment (bottom ~15% of market cap)
  
• Screening: Remove companies with MarketGrader grades below 50/100
  
• Selection: Top 100 small caps based on our fundamentals-based composite score
  
• Rebalancing: Semiannual refresh to maintain relevance and discipline
  

The MarketGrader Advantage in Small Caps

Traditional small cap benchmarks are typically overcrowded and tilted toward unprofitable, low-quality names. MarketGrader’s approach filters that universe down to the most fundamentally sound companies—offering a smarter way to access the growth potential of this segment.

Conclusion
If you’re seeking small cap exposure without compromising on quality, the MarketGrader U.S. Small Cap Core Index delivers a concentrated portfolio of America’s most promising emerging businesses—systematically selected for long-term success.