Key insights
- Small and mid-cap stocks, represented by VEMPX, have outperformed large-cap indexes (VIIIX and JLGMX) in the first four months of the year for the first time since 2013. This suggests a potential shift in market leadership away from the mega-cap dominance of the past decade. The sustainability and drivers of this trend warrant further investigation, but it could signal broadening market participation and increased risk appetite.
I was messing around with some rolling return data on the available funds in my 401(k) account today. Mainly comparing three different funds:
VIIIX (S&P 500 index) JLGMX (Large Cap growth) VEMPX (small/mid cap).
Large/mega caps have dominated the market for at least the last 10 years. However, this year is the first time since 2013 that VEMPX has outperformed both VIIIX and JLGMX through the first 4 months of the year. Anything could happen with them the rest of the year, but I thought it was an interesting data point to share. Any insight on what stocks or factors may be driving the relative outperformance of the small/mid caps thus far this year?