[1] The Small Cap Index represents an asset class of its own, i.e. the smaller quoted companies.
This type of asset class offers potential for growth which may not always seen in larger entities.
It also represents an attractive asset class from the portfolio theory perspective; i.e. diversification into chosen smaller capitalisation stocks is likely to improve the risk return equation for investors.
[1] Originally only stocks that were part of the ISEQ Overall index on 4 January 1999 and a market capitalisation at that date of € 400.000.000 or less were included in the list.
[1] The listing of companies in this index is reviewed every 3 months: March, June, September and December.