Home   Logon   Mobile Site   Research and Commentary   About Us   Call 1.800.621.1675 or Email Us       Follow Us: 

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Click for Bio

Follow Bob on Twitter Follow Bob on LinkedIn View Videos on YouTube
 

  Sector Performance Via Market Capitalization In The Current Bull Market
Posted Under: Sectors

 

View from the Observation Deck 

  1. From 3/9/09 through 5/30/17 (current bull market), small-capitalization (cap) stocks outperformed both mid- and large-cap stocks, as measured by the S&P 500 Index, S&P MidCap 400 Index and S&P SmallCap 600 Index (see "Index" line in table).
  2. We are encouraged by the fact that small-cap stocks have outperformed mid-cap stocks, which in turn have outperformed large-cap stocks, because it indicates that the traditional risk-return dynamic  (the greater the risk taken the greater the return expected) is alive and well.
  3. Sector performance can vary widely by market cap and several of the sectors reflect a huge disparity in performance. A quick glance at the returns in the table should at the very least help the average investor appreciate the merits of asset allocation and diversification, in our opinion.
  4. The S&P 500 Index had five sectors (Consumer Discretionary, Energy, Financials, Real Estate and Telecommunication Services) post the highest cumulative total returns, by market cap, for the period captured in the table. The S&P MidCap 400 Index had four (Health Care, Industrials, Materials and Utilities) top-performers, while the S&P SmallCap 600 Index had just two (Consumer Staples and Information Technology).
  5. One takeaway from the returns in the table is the significant outperformance of small-cap technology stocks over their mid- and large-cap counterparts. That is somewhat of a surprise considering how much attention the biggest, most influential technology companies garner from the financial media, in our opinion.

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. The S&P 500 Index is a capitalization-weighted index comprised of 500 stocks used to measure large-cap U.S. stock market performance. The S&P MidCap 400 Index is a capitalization-weighted index that tracks the mid-range sector of the U.S. stock market. The S&P SmallCap 600 Index is a capitalization-weighted index that tracks U.S. stocks with a small market capitalization. The 11 major S&P 500, S&P MidCap 400 and S&P SmallCap 600 Sector Indices are capitalization-weighted and comprised of S&P 500, S&P MidCap 400, and S&P SmallCap 600 constituents, respectively, representing a specific sector.

To Download a PDF of this post, please click here.

Posted on Thursday, June 1, 2017 @ 12:34 PM • Post Link Share: 
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.
Search Posts
MARKET ANALYSIS


 PREVIOUS POSTS
An Update On The “Trump Rally”
US Stocks Ended May 26, 2017
US Economy and Credit Markets Ended May 26, 2017
One Perspective On How Stocks Have Performed So Far In This Millennium
The Outlook For S&P 500 Index Earnings Reflects Strength Through Year-End
US Stocks Ended May 19, 2017
US Economy and Credit Markets Ended May 19, 2017
Investors Don’t Have To Settle For A 2.00% Stock Dividend Yield
A Snapshot Of Moving Averages
US Stocks Ended May 14, 2017
Archive
Skip Navigation Links.
Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2022 All rights reserved.