Despite predictions, small-cap stocks haven’t outperformed as expected in 2024, with the Russell 2000 up only 1%. Our Chief Research Officer, Chuck Etzweiler, points to indexing methodology as the main cause.
With less technology stocks than the S&P, the Russell 2000 has “greater representation in financial stocks versus the larger cap index with many of those being smaller, regional banks that have suffered in an inverted yield curve environment.”
Learn more of Chuck’s thoughts on the state of small caps: