Small-Cap Stocks Outperformed Large Caps in November 2015
Market cap analysis of XLF
Large-cap stocks above $10 billion make up 87.26% of the Financial Select Sector SPDR ETF (XLF). These stocks have lost 0.6% YTD (year-to-date) but have gained 1.3% in trade during November. In comparison, the broad market–based S&P 500 ETF (SPY) gained 0.4% during the same period.
Small-cap stocks—those with market capitalization under $10 billion—have slightly outperformed large caps and gained 1.8% in November, but they have lost 0.9% YTD. The underperformance of small caps relative to larger companies during the year hints at their vulnerability in the broader market. The sense is that investors choose to stay with large caps amid uncertain global conditions.
Interested in XLF? Don't miss the next report.
Receive e-mail alerts for new research on XLF
Market cap analysis of subgroups
Large-cap banking stocks make up 47% of the XLF portfolio. These stocks rallied 4.0% last month while small-cap banking stocks gained 6.8%. Year-to-date, large-cap banking stocks within the ETF have lost 0.5%, and small-cap banking stocks have gained 5.0%.
Year-to-date, the best performers in this subgroup are Northern Trust Corp. (NTRS) and Huntington Bancshares (HBAN), which returned 11.3% and 10.8%, respectively, during the year. The worst performers were Morgan Stanley (MS) and State Street Corp (STT), which lost 13.4% and 7.2%, respectively, year-to-date.