Performance – Ratio of Russell 2000 Index to Russell 1000 Index

Performance – Ratio of Russell 2000 Index to Russell 1000 Index The underperformance of small caps relative to large caps raises questions about their capacity to adapt to rapid changes in the economic landscape. Image: Morgan Stanley Wealth Management

Valuation – Russell 2000 Forward P/E

Valuation – Russell 2000 Forward P/E The U.S. small-cap forward P/E remains below the long-term average. Image: BofA US Equity & Quant Strategy

Valuation – Relative Forward P/E: Russell 2000 vs. Russell 1000

Valuation – Relative Forward P/E: Russell 2000 vs. Russell 1000 Small-cap stocks are still relatively inexpensive compared to large-cap stocks, which could make them an attractive option for investors looking to diversify their portfolios. Image: BofA US Equity & Quant Strategy

Russell 2000 Net Futures Contracts

Russell 2000 Net Futures Contracts Asset managers and leveraged funds are net long Russell 2000 futures. Image: Deutsche Bank Asset Allocation

Relative Performance – Nasdaq 100 vs. Russell 2000

Relative Performance – Nasdaq 100 vs. Russell 2000 The frenzy surrounding artificial intelligence is driving U.S. tech stocks back to high levels relative to small caps. Image: BofA Global Research