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:
