SMB (small minus big)

Definition#

The Fama-French size factor: return spread between small-cap and large-cap stocks.

Positive SMB beta means the portfolio tilts toward smaller companies.

Used in ArthaPilot#

• Factor Regression
• Match Factor Exposure

Related terms#

• HML (high minus low)
• Fama-French factors
• Marginal vs effective tax rate
• MAGI (modified adjusted gross income)
• AMT (alternative minimum tax)