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Bob Carey
Chief Market Strategist
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  Snapshot of U.S. Equity Styles/Market Caps
Posted Under: Themes
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View from the Observation Deck  
  1. Today's blog post is intended to expose potential opportunities within the growth and value styles of investing, as well as by market capitalization (market cap).
  2. At any given time, the equities markets are likely being led up or down by one of the three market cap classifications (large-cap, mid-cap or small-cap). Often this leadership role can be held for a multi-year period.
  3. From 1995-1999, large-cap stocks outperformed their mid- and small-cap counterparts by a sizable margin. From 2000-2012, mid- and small-caps outperformed large-caps by an even bigger margin.
  4. From 12/31/12 through 8/3/15, however, the S&P 500 Index, S&P MidCap 400 and the S&P SmallCap 600 indices posted similar cumulative total returns of 55.13%, 52.47% and 53.43%, respectively.
  5. As indicated in the chart, growth stocks have had the edge year-to-date, with the S&P MidCap 400 Growth Index as the top performer (as of 8/3/15).
  6. All six indices have double-digit 2016 earnings growth rate estimates and all six have 2016 estimated P/E ratios below their respective three-year averages as of 8/4/15. 
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions and other expenses incurred when investing. Investors cannot invest directly in an index. There can be no assurance that any of the projections cited will occur. The S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices are capitalization-weighted indices designed to measure large-capitalization, mid-capitalization and small-capitalization U.S. stock market performance. The Growth and Value sub-indices of the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices are designed to measure the performance of growth stocks and value stocks, respectively, within the S&P 500, S&P MidCap 400 and S&P SmallCap 600 indices.

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Posted on Tuesday, August 4, 2015 @ 1:05 PM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
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