Large capitalization stocks are likely to outperform small cap stocks over the next decade, according to BNY Mellon Beta Management.On Tuesday BNY Mellon Beta Management, a BNY Mellon Asset Management business that facilitates rebalancing programs and synthetic asset class exposure through the use of futures, swaps, index funds, and exchange-traded funds (ETFs), announced that it expects better returns and lower transaction costs for large caps over the medium to long term.

“Looking at the differential between the expected returns of large cap and small cap stocks, it appears that large caps have a good chance of outperforming small stocks over the next decade," said Mark A. Keleher, chief executive officer of BNY Mellon Beta Management. “Once you figure in the higher transaction costs for small caps, large caps appear even more attractive.”

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