The coronavirus pandemic is putting a bearish spin on large cap stocks, but their small cap counterparts’ pain is even more magnified. That said, being bullish on large caps might be the place to be in today’s market.
“For instance, while the S&P 500 and Dow Jones Industrial Indexes only reached bear market territory—read: down 20% from their highs—on March 11, the Russell 2000 small-cap and S&P 400 mid-cap indexes reached that threshold on March 9,” said ETF provider Direxion Investments in a recent note. “But, while the large-cap indexes have managed to stop the bleeding and make up some lost ground since the initial plunge, with both the S&P and Dow hovering near the -25% off their most recent highs, small caps, on the other hand, remain down by nearly -35% in the final days of March.”
^MSACWILCAP data by YCharts
Whether investors are looking for active or passive large cap strategies, here are a few ETFs to consider:
- Goldman Sachs ActiveBeta U.S. Large Cap Equity ETF (GSLC): seeks to provide investment results that closely correspond to the performance of the Goldman Sachs ActiveBeta® U.S. Large Cap Equity Index. The fund seeks to achieve its investment objective by investing at least 80% of its assets (exclusive of collateral held from securities lending) in securities included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its underlying index. The index is designed to deliver exposure to equity securities of large capitalization U.S. issuers.
- Goldman Sachs Equal Weight U.S. Large Cap Equity ETF (GSEW): seeks to provide investment results that closely correspond to the performance of the Solactive US Large Cap Equal Weight Index (GTR). The fund seeks to achieve its investment objective by investing at least 80% of its assets (exclusive of collateral held from securities lending) in securities included in its underlying index. The index consists of equity securities of large capitalization U.S. issuers. The index is an equal-weight version of the Solactive US Large Cap Index, a market capitalization-weighted index that includes equity securities of approximately 500 of the largest U.S. companies.
- Goldman Sachs JUST U.S. Large Cap Equity ETF (JUST): seeks to provide investment results that closely correspond to the performance of the JUST US Large Cap Diversified Index. The fund seeks to achieve its investment objective by investing at least 80% of its assets in securities included in its underlying index, in depositary receipts representing securities included in its underlying index and in underlying stocks in respect of depositary receipts included in its underlying index. The index is designed to deliver exposure to equity securities of large capitalization U.S. issuers that engage in “just business behavior” based on rankings produced by the index provider.
For more market trends, visit ETF Trends.
