The turmoil in the market at the end of last week has now driven the S&P 500 down for the year, with a year-to-date loss of 1.77 percent. Oddly enough, it's small-cap stocks that have been suffering the most. Through last Thursday, the Russell 2000 small-cap index was down 2.8 percent on the year, while the Russell 1000 large-cap index was nearly even, dropping by just 0.2 percent.
Last year, the large-cap index returned an astonishing 33.1 percent. But the small caps were even more impressive, returning 38.8 percent for the year.
That's the norm for these things. The small-cap index has outperformed the large-cap index in 10 of the past 16 years. And over the long haul, small cap stocks have returned slightly more than the large caps, although with much greater volatility.
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