uploads///Mkt cap analysis

Small Caps Underperformed Large-Cap Stocks in 2015

By

Jan. 5 2016, Updated 9:31 a.m. ET

Market cap analysis

Larger-cap stocks that are above $10 billion make up 87.3% of the Financial Select Sector SPDR Fund (XLF). These stocks fell 2.4% in 2015 and 2.6% during December 2015. In comparison, the broad-market based S&P 500 ETF (SPY) fell 0.8% during the past year. Smaller-capped stocks—those under $10 billion market capitalization—have underperformed large caps and have fallen 6.2% in 2015 and 6.1% in December.

The underperformance of small caps relative to larger companies during the year hints at the vulnerability in the broader market. The sense is that investors choose to stay with large caps as they are safer bets amid uncertain global conditions.

Article continues below advertisement

Market cap analysis of subgroups

Large-cap banking stocks make up 47% of the Financial Select Sector SPDR Fund’s portfolio. These stocks fell 3.7% last year while small-cap banking stocks fell 2.6%. In comparison, large-cap diversified financial services stocks fell 9.7% in 2015 while small-cap diversified financial services stocks fell 10.7%.

The best performers in this subgroup YTD (or year-to-date) are E*Trade Financial (ETFC) and the NASDAQ (NDAQ). The two have returned 23.5% and 21.5%, respectively, during the year. Meanwhile, the worst performers, Navient Corporation (NAVI) and Franklin Resources (BEN) have fallen 47.5% and 33.6%, respectively, in 2015.

Advertisement

More From Market Realist

  • BioNano Genomics Saphyr system
    Company & Industry Overviews
    BioNano Genomics (BNGO) Stock Looks Like a Buy, Solid Opportunity
  • Delta aircraft
    Company & Industry Overviews
    Delta Air Lines Updates Mandatory Vaccine Policy, Explained
  • AMC advertisement in walkway
    Company & Industry Overviews
    Why It's Time for Most Investors to Sell AMC Entertainment Stock
  • 100 Thieves founder Matthew Haag
    Company & Industry Overviews
    Why Growing Esports Company 100 Thieves Isn't Publicly Traded
  • 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.