Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  Sector Performance Via Market Cap
Posted Under: Sectors
Supporting Image for Blog Post

 

View from the Observation Deck

We update today’s table on a regular basis to provide insight into the variability of sector performance by market capitalization. As of the close on 10/7/24, the S&P 500 Index stood at 5,695.94, 1.15% below its all-time high of 5,762.48 set on 9/30/24, according to data from Bloomberg. The S&P MidCap 400 and S&P SmallCap 600 Indices stood 0.95% and 4.96% below their respective all-time highs as of the same date.

  • Large-cap stocks, as represented by the S&P 500 Index, posted total returns of 20.69% on a year-to-date (YTD) basis thru 10/7/24, outperforming the S&P MidCap 400 and S&P SmallCap 600 indices, with total returns of 12.57% and 8.18%, respectively, over the period (see table).

  • Both the S&P 500 and S&P MidCap 400 Indices set new all-time highs in 2024, while the S&P SmallCap 600 Index has yet to recapture its pre-COVID high of 1,466.02 set on 11/8/21.

  • Sector performance can vary widely by market cap and have a significant impact on overall index returns. Two of the more extreme cases in 2023 were the Communication Services and Technology sectors. The Communication Services, Information Technology, and Utilities sectors all exhibit significant variability in performance across market capitalizations so far in 2024.

  • Information Technology and Utilities, the two top-performing sectors in the S&P 500 Index YTD, represented 31.7% and 2.5%, respectively, of the weight of the S&P 500 Index on 9/30/24. By comparison, those sectors represented 9.2% and 2.6% of the S&P MidCap 400 Index, and 11.8% and 2.0% of the S&P SmallCap 600 Index, respectively, as of the same date.

  • As of the close on 10/7/24, the trailing 12-month price-to-earnings (P/E) ratios of the three indices in today’s table were as follows: S&P 500 Index P/E: 24.58; S&P MidCap 400 Index P/E: 17.42; S&P SmallCap 600 Index P/E: 16.94.

Takeaway: Both the broader S&P 500 and S&P MidCap 400 Indices increased to new all-time highs in September 2024, while the record high for the S&P SmallCap 600 Index occurred nearly three years ago on 11/8/21. Combined, the SmallCap and MidCap Indices comprised just 8.1% of the total market capitalization of the S&P 1500 Index as of 9/30/24. The last time (pre-COVID) that small and mid-sized companies accounted for 8.1% or less of the S&P 1500 Index’s market capitalization was on 4/28/00. Since then, the S&P MidCap 400 and S&P SmallCap 600 Indices notched average annual total returns of 9.44% and 9.45%, respectively, (4/28/00 thru 10/7/24). For comparison, the average annual total return of the S&P 500 Index was 7.75% over the same period.

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 an unmanaged index of 500 companies 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 S&P 500 Equal Weighted Index is the equal-weight version of the S&P 500 Index. The 11 major sector indices are capitalization-weighted and comprised of S&P 500, S&P MidCap 400 and S&P SmallCap 600 constituents representing a specific sector.

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

Posted on Tuesday, October 8, 2024 @ 3:01 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.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
The Only Constant is Change
Gold, Silver, and the Miners
Not Every Cycle is the Same
Homebuilder-Related Stocks
Consumer Checkup: Aisle 7
S&P 500 Index Earnings & Revenue Growth Rate Estimates
Regional Banks | Strong Start to the Third Quarter
A Snapshot of the S&P 500 Earnings Beat Rate
Money Market Fund Assets Hit New All-Time High
A Snapshot of Bond Valuations
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.
Follow First Trust:  
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 © 2024 All rights reserved.