Small Caps: US Mid-Caps Celebrate Comeback: These Are The Reasons And The Prospects
On Wall Street, small company stocks are currently rising. Why the Russell 2000 is performing better than the S&P 500 - and how investors can benefit from it.
The Russell 2000, which tracks the 2,000 smallest companies in the US Russell 3000 index, has outperformed the S&P 500, which comprises the 500 largest companies, so far this year, with a 15% gain versus 13%. This marks a reversal of fortunes, as the S&P 500 has outperformed the Russell 2000 over the past decade, with an annualized return of 13.5% compared to 10.6%.
Market observers attribute the Russell 2000's strong performance to a broadening of market participation and a rebound in domestically-focused small-cap stocks, particularly in the financial, industrial, and biotech sectors. The US economic upswing has also contributed to the Russell 2000's outperformance, with 80% of its companies generating revenue in the US compared to 60% for S&P 500 companies.
Written by urgent.news from Handelsblatt's report — not a translation of it. Machine-written — may contain errors; check the original before relying on it.
