Group 1: Market Trends - Large cap stocks have significantly outperformed small caps in recent years, which is an unusual trend, leading to attractive 7.2% dividends from closed-end funds [2][3] - Since the pandemic, small caps have lagged behind the S&P 500, but signs indicate a potential shift as investors may start looking for alternatives to large cap tech stocks [3][5] - The concentration of the S&P 500 is notable, with the top 10 firms accounting for 25% of earnings and 40% of market cap, indicating that Big Tech has become increasingly expensive relative to the rest of the market [4] Group 2: Investment Opportunities - If small caps begin to gain investor attention, it could lead to years of outperformance compared to large caps, with the iShares Russell 2000 ETF (IWM) potentially starting to outperform S&P 500 index funds [5][6] - The Royce Small-Cap Trust (RVT) is highlighted as a small-cap focused closed-end fund that offers a significantly higher yield of 7.2%, outperforming the IWM [7][8] - RVT has shown a near-10% net asset value (NAV) return, surpassing the small-cap index's 6.6%, indicating it is generating "alpha" [9][10] Group 3: Fund Performance - RVT's total market price return is up 5.8%, suggesting that its shares are not being bid up in line with its fundamentals, leading to a widening discount to NAV [10][11] - The fund's strategy of paying out a large portion of its profits as dividends makes it an attractive investment in the volatile small-cap sector, providing a steady income stream [12] - A potential strategy involves pairing RVT with another closed-end fund to optimize income and capital gains, reducing exposure to market volatility [13]