Tag Archives: U.S. small caps
Expanding the S&P Quality FCF Aristocrats Indices to U.S. Mid and Small Caps
Utilizing free cash flow (FCF) to evaluate a company’s quality can be a powerful way to identify financially resilient businesses. Unlike earnings, which can be influenced by accounting practices, FCF provides a clearer picture of a company’s ability to generate cash after covering essential expenses and investments. In our paper published this year, we demonstrated…
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Do Active Funds Outperform in Less-Efficient Markets?
Active managers sometimes tout their ability to select stocks in markets that are considered less informationally efficient and those that offer larger rewards to successful stock pickers. Smaller companies and those in emerging markets are typically presented as examples. What are the grounds for debate, and what do over 20 years of SPIVA® Scorecards tell…
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Equity Exuberance and Fixed Income Foreshadowing
In the immediate aftermath of the 2024 presidential election, U.S. equities soared on Wednesday, November 6, with the S&P 500® up 3%, while small caps surged even higher, with the S&P SmallCap 600® up a substantial 6%. Subsequently, on Thursday, November 7, the much-anticipated Fed rate cut of 25 bps came to fruition. With two…
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Magnificent Mid Caps and Sensational Small Caps
U.S. equities rose in 2023, with the mega-cap “Magnificent Seven” driving most of the S&P Composite 1500®’s 25% gain. While mega caps continued to outperform in January 2024, not all seven of the aforementioned group ranked highly. This has led to some market commentators looking to coin new phrases: “Sensational Six” or “Super Six” (the…
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S&P U.S. Indices H1 2023: Analyzing Relative Returns to Russell
After a challenging year in 2022, the U.S. equity market saw a strong turnaround in the first half of 2023, with the S&P 500® up 17% since year-end 2022. Exhibit 1 shows that the rebound was also observed across the cap spectrum. Returns in the second quarter outperformed the first quarter after the market shook…
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