Small caps have been falling behind this year: As of mid-November, the Russell 2000 is up 1.21% for 2014, while the S&P 500 is up 10.30%.

Despite the sector's underperformance this year, however, your clients may still want to consider U.S. small-cap funds over the long term. Historically, small caps tend to outperform large caps over five-year periods.

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