Sentences with phrase «by market cap underperformed»
Between 1926 and 2006, the S&P 500's 10 largest stocks by market cap underperformed the market by 2.9 % the subsequent year.
http://www.canadianbusiness.com/
The argument for these strategies is that weighting by market cap is not the smartest investment solution out there: the top quintile of the S&P 500 by market cap underperforms the average stock by -0.65 % annualized1, and market cap weighting allocates 65 % of the benchmark to those largest names.
Not exact matches
If you outperform the overall market but underperform the small - cap index, then you did well by choosing to be in small caps, but you did poorly picking individual small - cap stocks.
However, you must also consider the 10 - 20 year periods where small - cap or value stocks underperformed the total stock market (which is dominated by large - cap stocks).
By definition, a small - cap / value - tilted portfolio will have some periods in which it underperforms a «total market» portfolio and some periods in which it outperforms.
During a period when small caps outperform large caps by 2 % you would expect XCV to underperform the market by about 0.79 % -LRB--- 0.3930 x 2 %).