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?


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.