Today was another day where small-cap stocks advanced and large-cap stocks were down. For the past 12-18 months Wall St. has been telling investors the shift in momentum is moving from small-cap stocks to large-cap stocks. Nope. Not even close.
Last year small-caps gained 8% and mid-cap stocks were up 12% compared to a 3% gain for the S&P 500. (The Dow was down .6%) Year-to-date small-caps are up close to 11% while the S&P 500 is up a little over 4%.
One day the tide will turn, but in the mean time hold on to your small-cap stocks, funds and ETFs. These trends may continue for another year or two as small companies nimbly react to the recovering economy.
The most widely held small-cap ETFs include S&P 600 Small-Cap Index equivalents and Russell 2000 equivalents: iShares S&P Small Cap 600 Growth (IJT), iShares S&P Small Cap 600 Indes (IJR), iShares S&P Small Cap 600 Value (IJS), iShares Russell 2000 Index (IWM), iShares Russell 2000 Growth (IWO) and iShares Russell 2000 Value (IWN).
The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.