Tag Archives: S&P SmallCap 600

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 […]

Impact of Rising Interest Rates on Small-Cap Indices

Rising interest rates certainly has become a central investment theme going into 2017.  The 10-Year Treasury yield closed at 2.48% on Jan. 27, 2017, representing an increase of nearly 103 bps from six months ago.  Research has shown that equities tend to perform better following a rate hike, if inflation levels are moderate.  However, return Read more […]

Quality: A Driving Factor of Small-Cap Returns

Much has been written about the performance differential between the two leading small-cap indices, the S&P SmallCap 600® and Russell 2000.  Over a long-term investment horizon, the S&P SmallCap 600 has outperformed the Russell 2000 with less risk.  Part of the performance differential can be attributed to the June Russell rebalancing effect.  As winners from Read more […]

The Little Engine That Could

Since the U.S. presidential election, headlines touting small-cap performance have almost invariably cited the Russell 2000.  As impressive as that index’s return has been, S&P DJI has a little engine that persistently wins the small-cap race—the S&P SmallCap 600®.  Outperformance of the S&P SmallCap 600 versus the Russell 2000 primarily has to do with two Read more […]

Examining Sector and Factor Performance in the Third Quarter of 2016

High beta, value factors among the star performers, while low volatility lags amid heightened appetite for risk The high beta, value and size factors outperformed the broad-market S&P 500 Index by a sizeable margin during the third quarter, with the S&P 500 High Beta Index gaining 12.18% during the three-month period – outpacing all other Read more […]

The Outlook for Active Alpha

Aficionados of our SPIVA reports will recognize that most active managers underperform passive benchmarks most of the time.   For example, between 2000 and 2014,  a majority of large-cap U.S. managers beat the S&P 500 in only three calendar years.  The records of mid-cap managers against the S&P MidCap 400 and small-cap managers against the S&P SmallCap 600 are equally undistinguished. Read more […]