{"id":18305,"date":"2025-06-29T11:33:50","date_gmt":"2025-06-29T17:33:50","guid":{"rendered":"https:\/\/fundamentalis.com\/?p=18305"},"modified":"2025-06-29T14:19:05","modified_gmt":"2025-06-29T20:19:05","slug":"style-box-update-growth-still-leading-value-across-market-caps-zeroing-in-on-mid-caps","status":"publish","type":"post","link":"https:\/\/fundamentalis.com\/?p=18305","title":{"rendered":"Style-Box Update: Growth Still Leading Value Across Market-Caps: Zeroing in on Mid-Caps"},"content":{"rendered":"<p><a href=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-medium wp-image-18306\" src=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-300x90.png\" alt=\"\" width=\"300\" height=\"90\" srcset=\"https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-300x90.png 300w, https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-1024x306.png 1024w, https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-150x45.png 150w, https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-768x229.png 768w, https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-1536x459.png 1536w, https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725-1600x478.png 1600w, https:\/\/fundamentalis.com\/wp-content\/uploads\/2025\/06\/Styleboxupdate62725.png 1852w\" sizes=\"auto, (max-width: 300px) 100vw, 300px\" \/><\/a><\/p>\n<p>Return data courtesy of Morningstar, Inc.<\/p>\n<p>Probably of little surprise to readers, but the growth style of investing continues to beat value looking at year-to-date returns, although by smaller amounts than the previous years, which is also understandable given that the SP 500 has returned just 5.55% YTD in 2025, versus the 25% returns for the SP 500 in 2023 and 2024.<\/p>\n<p><em><strong>SP 400 MidCap annual returns vs the SP 500: (annual return)\u00a0<\/strong><\/em><\/p>\n<ul>\n<li>1\/1\/2000 through 6\/27\/205: The MidCap ETF (MDY) returned +9.20% while the SP 500 returned +7.78%;<\/li>\n<li>1\/1\/2010 through 6\/27\/2025: Midcaps returned +11.25% while the SP 500 returned +13.82%;<\/li>\n<li>1\/1\/2015 through 6\/27\/2025: Midcaps returned +8.88%, vs the SP 500&#8217;s +13.05%;<\/li>\n<li>1\/1\/2020 through 6\/27\/2025: Midcaps returned +9.16% vs the SP 500&#8217;s +14.29%;<\/li>\n<\/ul>\n<p><em><strong>Midcap performance relative to SP 500:<\/strong><\/em><\/p>\n<ul>\n<li>1\/1\/2000 &#8211; 6\/27\/2025: 142 bp&#8217;s per year outperformance;<\/li>\n<li>1\/1\/2010 &#8211; 6\/27\/2025: -257 bp&#8217;s per year underperformance;<\/li>\n<li>1\/1\/2015 &#8211; 6\/27\/2025: -417 bp&#8217;s per year underperformance;<\/li>\n<li>1\/1\/2020 &#8211; 513 bp&#8217;s per year underperformance;<\/li>\n<\/ul>\n<p><em><strong>Russell 2000 vs the SP 500: (annual return)\u00a0<\/strong><\/em><\/p>\n<ul>\n<li>1\/1\/2000 through 6\/27\/2025: The R2k returned +7.32%, vs the SP500&#8217;s returned +7.78%;<\/li>\n<li>1\/01\/2010 through 6\/27\/25: The R2k returned +9.85%, vs the SP 500&#8217;s +13.82%;<\/li>\n<li>1\/01\/2015 though 6\/27\/25: The R2k returned +7.24%, vs the SP 500&#8217;s +13.05%;<\/li>\n<li>01\/01\/2020 through 6\/27\/25: The R2k returned +6.24% vs the SP 500&#8217;s +14.29%;<\/li>\n<\/ul>\n<p><em><strong>Russell 2000 performance relative to SP 500:<\/strong><\/em><\/p>\n<ul>\n<li>1\/1\/2000 &#8211; 6\/27\/2025: -46 bp&#8217;s per year underperformance;<\/li>\n<li>1\/1\/2010 &#8211; 6\/27\/2025: -397 bp&#8217;s per year underperformance;<\/li>\n<li>1\/1\/2015 &#8211; 6\/27\/2025: -581 bp&#8217;s per year underperformance;<\/li>\n<li>1\/1\/20 &#8211; 6\/27\/2025: -805 bp&#8217;s per year underperformance;<\/li>\n<\/ul>\n<p><em><strong>Summary \/ conclusion:<\/strong><\/em> First, apologies to readers for cutting off the end data for the annual return data as of June 27th, but the time it took to develop and write this post couldn&#8217;t have been done on July 1 &#8217;25, given other tasks. Besides, will June 30th make enough of a difference in annual return data, dating back 5,10, 15 and 25 years ? Probably not.<\/p>\n<p>The Russell 2000 (R2k, i.e. small-cap benchmark) is getting a lot of ink lately for it&#8217;s relative performance versus the SP 500, and for good reason, but what&#8217;s not been mentioned is the R2K&#8217;s relative performance is getting uglier the more recent the timeframe.<\/p>\n<p>Also what I found interesting is that mid-cap&#8217;s (SP 400) are all but ignored in the discussion.<\/p>\n<p>It was surprising to see that the SP 400 Mid-Cap (MDY) actually outperformed the SP 500 the 25.5 years, from January 1, 2000, by 142 bp&#8217;s a year. (That&#8217;s not too shabby.) (Another aspect that requires explanation for readers is that YCharts, which has a date-to-date performance calculator (a poor man&#8217;s Bloomberg) doesn&#8217;t have a &#8220;SP 400 Mid-Cap Total Return&#8221; category, so the MDY or the SPDR MidCap Blend ETF is used as the proxy for the benchmark.<\/p>\n<p>Looking at the style-box spreadsheet at the very top of the page, the 10-year returns for both the MidCap and Russell 2000 style boxes are still below 10%. Small-cap value, if you look at some of the bigger ETF&#8217;s like IJS (iShares SP 600 SmallCap Value ETF) and IWN (Russell 2000 Value ETF) both show that the financial sector has a weighting in each ETF of 25%.<\/p>\n<p>What&#8217;s a potential catalyst for the small cap financials ? After financials, industrials were the next largest sector, and then consumer cyclicals.<\/p>\n<p>The blog keeps an eye on this stuff, just to touch all the bases in the various segments of the equity market that have been less-emphasized or given less press attention the last 5 years.<\/p>\n<p>The spreadsheet at the top gives YTD returns and then shows how the various style boxes performed the last two calendar years.<\/p>\n<p>None of this is advice or a recommendation but only an opinion. Past performance is no guarantee of future results. None of this information may be updated and if updated may not be done so in a timely fashion. Readers and investors should evaluate their own comfort with market volatility and adjust accordingly.<\/p>\n<p>Thanks for reading.<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Return data courtesy of Morningstar, Inc. Probably of little surprise to readers, but the growth style of investing continues to&hellip;<\/p>\n","protected":false},"author":2,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[117,347,142],"tags":[],"class_list":["post-18305","post","type-post","status-publish","format-standard","hentry","category-russell-2000","category-sp-400-midcap","category-style-analysis"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/18305","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=18305"}],"version-history":[{"count":10,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/18305\/revisions"}],"predecessor-version":[{"id":18317,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=\/wp\/v2\/posts\/18305\/revisions\/18317"}],"wp:attachment":[{"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=18305"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=18305"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fundamentalis.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=18305"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}