Tag Archives: S&P SmallCap 600

Return Efficacy of Profitability Metrics in International Small-Cap Equity

Despite both indices representing the U.S. small-cap market, the S&P SmallCap 600® has outperformed the Russell 2000 Index in 16 out of 24 calendar years, with an annualized excess return of 1.81%.[1] Prior research by S&P Dow Jones Indices[2] found that inherent differences in index construction drove the historical return differential. Notably, the profitability inclusion Read more […]

Can small-cap outperformance continue?

Small caps have materially outperformed large caps in 2018, with the S&P SmallCap 600 outpacing the S&P 500 7.80% to 2.58% between Dec. 29, 2017, and May 25, 2018.1 Below, I highlight what I believe to be the drivers of small-cap returns this year, and why I believe the trend could continue. Tax cuts have Read more […]

Small Caps Rebound Big in March

The first quarter of 2018 will be remembered as the quarter that ended the 9 quarter winning streak for the S&P 500 (TR).  As the volatility rose, the market went from posting its best January since 1997, up 5.7%, to losing 3.7% in February, its first monthly loss in 15 months.  February wasn’t only bad Read more […]

The Impact of Size on Active Management Performance in 2017: Part 1

U.S. equity markets finished 2017 on a strong note, with the S&P 500® returning 21.83% during the one-year period ending on Dec. 31, 2017. This was followed by the S&P MidCap 400® and S&P SmallCap 600® returning 16.24% and 13.23%, respectively. Despite market-cap weighting being a dominant form of indexing, equal weighting has outperformed on Read more […]

How Global Are the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600® Style Indices?

In a prior post, we looked at the global exposure of the S&P 500. Given the large number of multi-national corporations based in the U.S., approximately 29% of S&P 500 revenues came from overseas in 2017. Beyond large-cap companies, do regional and country exposures change as investment style changes? In this blog, we add to Read more […]

Big Things Come In Small Packages – Part 3

If you found a small-cap fund with a 23 year track-record that performed in the top 10th percentile of its peers over a 3-, 5-, 10-, and 15-year period, might you consider investing?  How about if you found out it was also a fraction of the price of its peer group?  Sounds pretty attractive, but Read more […]

Big Things Come In Small Packages – Part 1

Sometimes first isn’t better, and sometimes bigger isn’t better.  In this case, first and bigger are mostly worse.  Here’s some background behind the launch timing of the Russell 2000 versus the S&P SmallCap 600.  The timing and business around the Russell 2000 launch really helped the popularity of the index, but with an extra decade’s Read more […]

Active Managers: Hope for high dispersion, not just low correlations

The Wall Street Journal recently reported that, according to analysis by Credit Suisse, the correlation among S&P 500 sectors had fallen close to its lowest level ever, and that this was good for active equity managers, “who find it easier to make money betting on specific companies or trends when stocks aren’t all moving together.” Read more […]

Impact of Allocation and Security Selection Decisions on Active Fund Performance: Evidence from the U.S. SPIVA Scorecard

The release of the SPIVA U.S. Mid-Year 2017 Scorecard provided a welcoming dose of optimism for proponents of active management.  One statistic, which was picked up heavily by financial media (Financial Times Article) and market participants, is that 52.49% of All Domestic Funds managed to beat the S&P Composite 1500® (the designated benchmark).  The conversation Read more […]

Turning Point?

Here are six notable developments in the U.S. financial markets in September 2017. Smaller caps outperformed large caps. Value outperformed growth. Energy was the top-performing sector, and the utilities sector was the worst-performer. Developed markets posted gains, while emerging markets lost steam. Commodity indices rebounded, driven by recent strength in energy. U.S. 10-year and 30-year Read more […]