Large > Small

Large-cap stocks continue to outperform small-caps this year on a rolling 12-month basis. The S&P 500 index (blue line) increased 11.8% for the twelve months ended 11/4/20 while the the S&P 600 index (red line) actually declined 8.0%.

The outperformance of large-caps exceeded 20% in late August and much of September. The orange line in the lower chart shows the trailing twelve month return difference. Large-caps have been consistently outperforming small-caps since 2018.

The large tech names have driven performance of the S&P 500. Trends in place prior to COVID-19 have accelerated and low rates give greater value to future growth. More to ponder.