Friends With Money #273: Small caps, big upside?

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Australia's sharemarket may be dominated by a handful of large miners and banks, but there are plenty of opportunities beyond the heavyweights.

On this episode of the Friends With Money podcast, Money's Tom Watson is joined by Jamie Hannah, deputy head of investments and capital markets at VanEck.

They discuss the risks and rewards offered with small caps and mid caps.

small caps shares

Episode timestamps

00:00 Introduction

01:17 What are small caps and mid caps?

03:33 Behavioural differences

05:07 The mid cap sweet spot

06:18 How have small and mid caps performed?

08:36 The investment case for smaller companies

11:21 How much should investors allocate to small and mid caps?

13:19 The key risks of investing in smaller companies

15:30 Options for gaining exposure to small and mid caps

16:31 Local and international ETF opportunities

19:25 Conclusion

Friends With Money podcast FAQ

What is the Friends With Money podcast?

Friends With Money is a weekly personal finance podcast by Money magazine, offering expert insights on investing, budgeting, superannuation, property, and other money strategies for everyday Australians.

Where can I listen to the podcast?

You can listen on Apple Podcasts, Spotify, or YouTube (with closed captions available).

Who hosts Friends With Money?

Episodes are hosted by Vanessa Walker and Tom Watson from Money magazine, featuring expert guests and real conversations about money.

Is the podcast suitable for beginners?

Yes! It's designed to be accessible for beginners while still offering valuable insights for seasoned investors.

What topics does the podcast cover?

The Friends With Money podcast covers topics including banking, property, budgeting, superannuation, investing, saving, insurance, employment, travel and more.

How often are new episodes released?

New episodes are released weekly, so you can stay up to date with the latest financial tips and trends.

Can I watch episodes with captions?

Yes, full episodes with closed captions are available on YouTube.

Why subscribe to the Friends With Money podcast?

Boost your financial literacy anytime, anywhere with the Friends With Money podcast from Money magazine. Whether you're commuting, working out, or relaxing at home, this weekly podcast makes it easy to grow your money knowledge on the go.

Each episode dives into real conversations about money - how it's earned, shared, saved, and grown - with tips and insights that make finance simple and relatable. Perfect for beginners and seasoned investors alike, it's your go-to guide for building better financial habits.

Subscribe to the Friends With Money podcast today and start learning when it suits you.

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Tom Watson is a senior journalist at Money magazine, which won three awards at the 2026 Mumbrella Publish Awards, and one of the hosts of the Friends With Money podcast. He's previously worked as a journalist covering everything from property and consumer banking to financial technology. Tom has a Bachelor of Communication (Journalism) from the University of Technology, Sydney. Connect with Tom Watson on LinkedIn.

Jamie Hannah is the deputy head of investments and capital markets at VanEck. He provides portfolio management and capital market trading across the full range of VanEck's passive solutions. Prior to joining VanEck, Jamie worked at Source ETFs in investment management and he held various roles at ABN Amro, Deutsche Bank, Morgan Stanley, Morgan's and PricewaterhouseCoopers. Jamie has a Bachelor of Commerce (Finance and Management Accounting) from the University of Newcastle and is an Associate of the Chartered Institute for Securities and Investment. Connect with Jamie Hannah on LinkedIn.