As far as exchange traded funds (ETFs) divvied up by cap size and growth vs. value, it’s been all about the mid-caps so far this year. For the last three months, mid-caps have returned 4.5% in the value category, 8% in the blend and 10.5% in growth.

But now ETF provider SPA says there are a number of factors that are priming the large-caps for strong performance.

The provider, which uses MarketGrader for its investment methodology, says many factors are pointing at the large-cap sector relative to small-caps and U.S. bonds, reports Easier Finance.

Large-caps over the last three months are down 6.2% for value, 0.9% for blend and up 3.1% for growth.

Reasons SPA says large-caps will regain their strength:

• The trade-weighted dollar index is at its lowest level on record.
• Bond yields have fallen below equity yields.
• Large-caps perform well during high volatility.
• Large-caps are cheap compared to small-caps on a fundamental basis.

If the predictions come to fruition, some large-cap focused ETFs to consider:

• SPA ETF Market Grader Large Cap (SZG), down 5.1% year-to-date
• iShares S&P 100 Index Fund (OEF), down 11.9% year-to-date
• SPDR S&P 500 ETF (SPY), down 9.4% year-to-date
• Vanguard Large cap ETF (VV), down 8.4% year-to-date
• PowerShares QQQ (QQQQ), down 7.1% year-to-date

Tags: Bond ETFs, Large-Cap, Mid-Cap, Sector ETFs, Small-Cap