Small caps are outperforming large caps significantly in 2018, mainly from the tax cuts, growth, strong dollar and concern about international trade. This has driven the S&P 600 (TR) 8.4% higher than the S&P 500 (TR) (year-to-date through Aug.31, 2018,) measuring the 5th biggest small cap premium in history since 1995, and is the biggest Read more […]
Much attention has been drawn to small caps by top tier media since the small cap premium is now the biggest in eight years and the fifth biggest in history. The outperformance of the small cap stocks versus the large caps is being driven by the current economic environment of growth, rising interest rates, inflation and Read more […]
Though the large-caps continue to rally more than the small-caps on the back of their biggest annual outperformance since 1999, small-caps persistently outperform mid and large-caps over longer periods of time, as shown below in the chart and in part 2 of this blog series. This has been shown by many researchers, most notably by Read more […]
Not all indices are created equally, especially those representing US small-cap equities. Many investors are surprised to learn that the S&P SmallCap 600 has outperformed the Russell 2000 by 2% annualized since inception (Dec. 31, 1994.) This outperformance is persistent through different time periods, bull and bear market cycles, and with less risk. The performance Read more […]
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 […]
This is the fourth post in a series of blog posts relating to the in-depth analysis of performance differential between the S&P SmallCap 600® and the Russell 2000. The previous posts demonstrate that the different historical risk/return profiles of the two U.S. small-cap benchmarks can be partially explained by the July reconstitution effect and the additional Read more […]
This is the third in a series of blog posts relating to the in depth analysis of performance differential between the S&P SmallCap 600 and the Russell 2000. As we noted in the previous post, the reconstitution effect seen in the Russell 2000 doesn’t fully explain the differences in returns between the S&P SmallCap 600 and Russell Read more […]
This is the second in a series of blog posts relating to the in depth analysis of performance differential between the S&P SmallCap 600 and the Russell 2000. Numerous studies have been conducted on Russell’s annual reconstitution process in June, particularly regarding the downward price pressure placed on the Russell 2000. As winners from the Russell 2000 Read more […]
