Market cap analysis
Large-cap stocks above $10 billion make up 87.3% of the Financial Select Sector SPDR ETF (XLF). These stocks have fallen 10.5% in the past one year and 2.8% during the week ended January 22, 2016. In comparison, the broad-market-based SPDR S&P 500 ETF (SPY) rose 1.4% during the week.
Small-cap stocks—those under $10 billion market capitalization—have underperformed large caps. They’ve fallen 16% in the past one year and 8.3% last week. The underperformance of small caps relative to larger companies during the year hints at vulnerability in the broader market. The sense is that investors choose to stay with large caps, as they’re safer bets in uncertain global conditions.
Market-cap analysis of subgroups
Large-cap banking stocks make up 47% of XLF. These stocks fell 11.8% in the last one year. Small-cap banking stocks fell 14.1%. In comparison, large-cap diversified financial services stocks fell 15.5% in the trailing one year, while small-cap diversified financial services stocks fell 21.7%.
Last week, large-cap banks fell 5.2%, while small-cap banks fell 6.7%. In comparison, large-cap and small-cap diversified financial services stocks fell 2.4% and 2.3%, respectively, in value. Stocks for American Express (AXP), Fifth Third Bancorp (FITB), and Bank of America (BAC) fell 13%, 9.7%, and 9.5%, respectively, in the week ended January 22, 2016.
Gainers for the week were real estate stocks Kimco Realty (KIM), Leucadia National, and General Growth Properties.