Total Return by Market Cap and Investment Style


Which investment approach is outperforming so far in 2021?

Today’s chart answers that question by presenting the inflation-adjusted total return for both market cap and investment style.

Today’s chart illustrates that small-cap value stocks have significantly outperformed so far in 2021 (blue columns).


Many small-cap value stocks were hit hard by the economic hardships caused by the pandemic and are bouncing back as the economy attempts to reopen.

Real Total Return by Market Cap and Investment Style

What is considered a growth stock?

Generally, a growth stock is a share in a company that has above average earnings growth and has the potential to grow faster than the overall economy.

What is considered a value stock?

Generally, a value stock is a share in a company that is appears to be undervalued based on some fundamental criteria such as earnings, dividends, revenue, book value, etc.

What is market cap?

Market cap, short for market capitalization, is the total market value of a company’s outstanding shares.

What is the difference between large-cap and small-cap?

Market cap categories break down as follows: mega-cap ($100 billion plus), large-cap ($10 billion-$100 billion), mid-cap ($2 billion-$10 billion), small-cap ($300 million-$2 billion), and micro-cap (less than $300 million).