July 26, 2007 at 3:32 pm by Tom Lydon
Small-cap exchange traded funds (ETFs) have outperformed large-cap ETFs for seven years. That’s quite a run. As we know though, the market is cyclical and obeys the law of gravity: What goes up must come down.
Recent earnings reports suggest that large-cap stocks, and thus large-cap ETFs, might steal the spotlight soon. Apple (AAPL), Dell (DELL) and other large companies did well. In addition, large-cap blend funds performed better than small-cap blend funds year-to-date, reports Amanda B. Kish for The Motley Fool. Similarly, if you look at the SPDR DJ Wilshire Large Cap (ELR) it has a slight edge over the SPDR DJ Wilshire Small Cap (DSC).
Could this be the beginning of a new trend where large caps outperform small caps?
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