I was messing around with some rolling return data on the available funds in my 401(k) account today. Mainly comparing three different funds:
VIIIX (S&P 500 index)
JLGMX (Large Cap growth)
VEMPX (small/mid cap).
Large/mega caps have dominated the market for at least the last 10 years. However, this year is the first time since 2013 that VEMPX has outperformed both VIIIX and JLGMX through the first 4 months of the year. Anything could happen with them the rest of the year, but I thought it was an interesting data point to share. Any insight on what stocks or factors may be driving the relative outperformance of the small/mid caps thus far this year?
Are small/mid caps finally back?
byu/whatthewhat_007 ininvesting
Posted by whatthewhat_007
3 Comments
Huh? Large/mega caps have dominated the market since 1602 when the first stock market open in Amsterdam.
Just buy DFSV
Generally large blend has consistent and stable growth, so it gets that attention deservedly so.
Small (value) and mid (growth) have always outperformed but aren’t stable or reliable like large blend.
So, “back” doesn’t mean much but it’s a long term play. Someone that knows a lot more about it can detail it but small/mid and large cap companies are inherently quite different how they scale and meet market demands.