uploads///Mkt cap analysis

Small-Cap Financials Underperformed Large-Caps Last Week


Jan. 13 2016, Updated 11:06 a.m. ET

Market cap analysis

Larger-cap stocks, above $10 billion, make up 87.3% of the Financial Select Sector SPDR Fund (XLF). These stocks have lost 8% in the past year. They fell 6.8% last week. In comparison, the broad-market based S&P500 ETF (SPY) lost 5.9% during the week.

Smaller-capped stocks—those under $10 billion in market capitalization—have underperformed large-caps. They lost 11.2% in the past year and 8.3% last week. Small-caps’ underperformance relative to larger companies during hints at vulnerability in the broader market. The sense is that investors choose to stay with large caps since they’re safer bets amid uncertain global conditions.

Article continues below advertisement

Subgroup market cap analysis

Large-cap banking stocks make up 47% of the XLF portfolio. These stocks fell 8.2% in the last year. Small-cap banking stocks lost 5.5%. In comparison, large-cap diversified financial services stocks fell 15.1% in the trailing one year while small-cap diversified financial services stocks fell 17.7%.

Last week, both large-cap and small-cap banks lost ~9%. Large-cap and small-cap diversified financial services stocks lost 8% and 10%, respectively, in value. Genworth Financial (GNW), Navient (NAVI), and Capital One Financial (COF) fell 18.9%, 17.6%, and 12.8% last week.


More From Market Realist

  • Michelob Ultra beer
    Company & Industry Overviews
    AB InBev Is the Top Beer Brand Worldwide—Is It a Monopoly?
  • Businesswoman looking out a window
    Company & Industry Overviews
    Shifting Focus: Three Women Investing Funds in 2021
  • Aol logo on office building,
    Company & Industry Overviews
    What We Know About Apollo Global Management, New Owners of AOL and Yahoo
  • Chick-fil-A sign
    Company & Industry Overviews
    Why It Only Costs $10K to Own a Chick-fil-A Location
  • CONNECT with Market Realist
  • Link to Facebook
  • Link to Twitter
  • Link to Instagram
  • Link to Email Subscribe
Market Realist Logo
Do Not Sell My Personal Information

© Copyright 2021 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.