Investors may have seen value in the small-cap category after smaller stocks underperformed large-caps in the post-election rally.
Small-caps also regained their appeal as investors renewed their outlook on the Trump administration’s pro-growth agenda.
Previously, momentum in U.S. markets had stalled on uncertainties over President Trump’s ability to push through his pro-growth agenda.
DWAS identifies small-cap firms with positive relative strength characteristics to follow companies with strong forward momentum. It has a growth-oriented strategy: 57.5% small-cap growth, 26.1% small-cap blend, and 14.0% small-cap value.
Sectors include health care 22.6%, information technology 21.2%, financials 20.3%, industrials 15.1%, consumer discretionary 11.1%, materials 3.7%, consumer staples 3.6%, and telecom 0.8%.