Why ex-20 is the prime hunting ground for ASX returns

Of the top 20 largest and most successful US companies from the past quarter century, only three remain constituents today – Walmart, Exxon Mobil and JP Morgan Chase.

Of the top 20 largest and most successful Australian companies from 2000, more than half remain as constituents, with banks and miners dominating.

While our biggest companies have served us well, the lack of innovation and new entrants into the upper echelons leaves the top part of our market looking old hat compared to global peers, lacking diversification and growth potential.

Fortunately, looking outside the top 20 yields a different result. The small and mid-cap space is rich with companies on the cutting edge, disrupting industries and carving out new markets. But there are also greater risks.

So, how are investors to sort the wheat from the chaff? To find out, Livewire’s Vishal Teckchandani is joined by Marcus Burns from Spheria Asset Management and David Allingham from Eley Griffiths Group.

They share what they look for in small and mid-caps (SMID) and, for good measure, they highlight a favourite SMID they believe has staying power. 

This video was recorded on 26 March 2025.