The S&P 500 was up 2.35% over the week bringing its year-to-date (YTD) performance to 15.91%. This strong performance was mainly driven by a handful of mega-cap stocks, namely Apple (NASDAQ:AAPL), Microsoft (NASDAQ:MSFT), Alphabet-Google, Amazon (NASDAQ:AMZN) and Nvidia, which together held up the performance of the benchmark index to an exceptional degree. For context, these five stocks are responsible for more than 80% of the overall index return despite accounting for only 22% of its allocation.
In contrast, small-cap stocks have underperformed significantly compared to large-caps over the past few months. The Russell 2000 index is up 7.24% YTD but it’s worth noting that half of this performance was realized in the last week of June (+3.68%). Is this a tipping point?
According to Goldman Sachs (NYSE:GS) strategist Lily Calcagnini, small cap stocks are trading at a discount in comparison to the large-cap market segment. Her view is that while the S&P500 should continue to grow and hit 4,700, the Russell 2000 could outperform its large cap peers by 5% in the meantime.
After this release, small-cap stock ETFs gained 3.73% on average week-over-week. The Vanguard Small Cap ETF (VB) collected nearly $175 million in net inflows and gained 4.32%, while the iShares Core S&P Small-Cap ETF posted a net gain of 4.36% and registered net inflows of almost $98 million over the week.
Group Data
Funds Specific Data : IJR, VB, SCHA
This content was originally published by our partners at ETF Central.