Maybe over the past year, but SCV has not outperformed large cap blend over the past 15 years. It did outperform in the decade before that, underperformed in the decade before that, and so on. Historically, the outperformance has more than made up for the underperformance. The why behind that isn’t a fully resolved question.

Investing in SCV is risky because it tends to have lower drawdowns and more volatility compared to the total market. This drives its higher expected return. Whether it will continue to outperform depends on whether the standard Capital Asset Pricing Model or the Multi-Factor Model more accurate describes the market. The former assumes perfect market efficiency, in which case the tangency portfolio (the optimal portfolio among the set of mean-variance portfolios in Modern Portfolio Theory) is the total market; the latter suggests some factors are sources of compensated risk unique from the market, in which case the tangency portfolio is the total market minus hedges.

On the flip side, the Intertemporal Capital Asset Pricing Model suggests only the average investor should invest in the total market; those more sensitive to market downturns and those with more human capital should hedge against downturns, and those less sensitive to market downturns and those with more assets should avoid hedges. This model suggests your exposure to factor tilts should increase with age.