Did a small-cap value tilt pay?

July 1926 to September 2025, 99 years of monthly total returns. Both mixes rebalanced once a year, both measured over the same months.

The answer
1.1 pts a year
Over 99 years, a small-value tilt returned 11.38% a year against 10.32% for US total market. That is 1.1 percentage points a year, and on $10,000 left alone it is the difference between $441,493,641 and $170,640,920. It also fell further on the way: 84.4% against 83.7%.
Nominal returns unless the row says otherwise. No fund fees, spreads or taxes.

Side by side

US total market
One fund, every US listed company, weighted by size.
10.32%
A year, before inflation
After inflation7.13%
Worst fall83.7%
$10,000 became$170,640,920
A small-value tilt
78% US total market, 22% US small-cap value, rebalanced once a year.
11.38%
A year, before inflation
After inflation8.16%
Worst fall84.4%
$10,000 became$441,493,641
Inflation over these months ran 2.98% a year, which is what turns the first number into the second. The worst fall is peak to bottom on month-end values, so the real one was worse than the figure shown.

Growth of $10,000

1930194019501960197019801990200020102020
US total market A small-value tilt
Log scale. On a straight axis a lifetime of compounding is a flat line and then a cliff, which hides everything that happened in between. Here a constant slope means a constant percentage gain, so the two lines can be compared at any point.

What this leaves out

The window is doing a lot of the work. These are the months where every series involved exists, which is July 1926 onward. Pick a different start and the answer can change sides. That is a fact about backtests, not about these two mixes.

Nobody earned these numbers. They are index returns. A real holder paid a fund fee, paid a spread on every trade, paid tax on dividends in a taxable account, and rebalanced late or not at all.

The worst fall is the part that decides it. A number you can read in a second took years to sit through, and the mix someone can hold through a fall beats the one they sell.

Run your own mix on the backtest, or put your real accounts into the drift calculator and see where the next contribution should go.

Other comparisons