U.S. Small-caps vs. Large-caps
U.S. small-cap stocks are leading the equity markets year-to-date. The Russell 2000 Index, widely viewed as the bellwether for measuring the performance of small-cap stocks has risen 5.62% in 2018 compared to a rise of 1.54% for the U.S. large-cap Russell 1000 Index.
Several factors may potentially be contributing to the small-cap outperformance, including:
Revenues – Majority of small companies derive revenues from domestic activities