Tag Archives: S&P SmallCap 600

S&P Composite 1500®: Measuring Market Trends

The S&P Composite 1500 measures the U.S. equity market by combining three world-renowned benchmarks – the S&P 500®, S&P MidCap 400®, and S&P SmallCap 600® – which together encompass approximately 90% of U.S. equity market capitalization.  With 2019 in the rear-view mirror, it is obvious that last year was extremely positive for U.S. equities:  the Read more […]

2019: A Market Review

With 2019 coming to a close, market participants may use the time to evaluate portfolio performance and to assess what changes (if any) they would like to make based on return expectations and the market outlook.  While the future is uncertain – hindsight really will be 2020 when it comes to evaluating next year’s returns Read more […]

Celebrating 25 Years of the S&P SmallCap 600®

Yesterday marked 25 years since the launch of the S&P SmallCap 600.  Since then, the small-cap equity benchmark delivered an annualized total return of nearly 11% and has become the basis for many investment strategies; around USD 73 billion was indexed to the S&P SmallCap 600 as of the end of 2018.  And if we Read more […]

Factor Analysis of U.S. Small-Cap Benchmarks

We recently published the 10-year anniversary edition of the paper “A Tale of Two Small-Cap Benchmarks,” which gives insight into why the S&P SmallCap 600® outperformed the Russell 2000, historically.[1] Our latest paper also showed that, in the period from Dec. 31, 2002, to Dec. 31, 2018, profitable companies typically outperformed unprofitable companies in the Read more […]

Does Size Affect the Active versus Passive Score of Small-Cap Mutual Funds?

In my earlier blog, we explored the effect of size on active large-cap equity funds’ performance. We ranked all long-only active large-cap equity funds by their size at the beginning of the observation period and divided them into quartiles, with the first quartile being the largest and the fourth being the smallest. We found that, Read more […]

Index Construction Matters in U.S. Small Cap

Market participants generally expect risk/return profiles to be similar across broad market indices representing the same universe. However, indices’ risk/return characteristics can vary substantially. As of Aug. 31, 2019, the S&P SmallCap 600® returned 10.21% per year since year-end 1993, while the Russell 2000 returned 8.53%. So why is there a substantial risk/return gap between Read more […]

Large-Cap Real Estate Was the Top U.S. Segment in May

After four consecutive months of gains by the S&P 500®, the U.S. equity market broadly declined in May. The S&P 500, S&P MidCap 400®, and S&P SmallCap 600® declined 6.6%, 8.1%, and 8.9%, respectively. The primary catalyst was the renewed trade tension between the U.S. and China, which reversed course from the optimism coming out Read more […]

Historic Start for U.S. Equities Continues into the Start of May

The S&P 500® was up 3.93% in April, marking the fourth consecutive month of gains. The YTD gain of 17.51% was the best since 1987 and the fifth-best in the entire history of the index. The index set a new all-time high in April, surpassing the previous high close from Sept. 20, 2018. This completed Read more […]

S&P 500® Has Best First Quarter in over 20 Years – But Upward Momentum Slows

The S&P 500 finished Q1 2019 up 13.07%. This was the best first quarter return since the 13.53% posted in Q1 1998. January’s 7.87% return was the best start to the year since 1987 (13.18%). The hot start cooled some with the 10th-best February since 1987, at 2.97%. In March, the upward momentum slowed further, Read more […]

2018 SPIVA® Scorecard: Volatility Does Not Help Active Performance

Contrary to the myth that active managers tend to fare better than their benchmarks during volatile markets, 68.83% of domestic equity funds lagged the S&P Composite 1500® during the one-year period ending Dec. 31, 2018, making 2018 the fourth-worst year for active U.S. equity managers since 2001 (see Exhibit 1). Evidence from the SPIVA U.S. Read more […]