% of Large-Cap Mutual Funds Outperforming their Benchmarks Active large-cap funds are having a good year in 2025, with half of them beating their benchmarks so far—much higher than the average of 37%. Still, history shows that it’s uncommon for this outperformance to last. Image: Goldman Sachs Global Investment Research
Small-Caps: Upper End of Long-Term Range The combination of historical patterns, attractive valuations, and positive earnings growth forecasts suggests that U.S. small-caps may be well-positioned for a period of outperformance in the near future. Image: Fundstrat Global Advisors, LLC
Equity Flows U.S. equity flows have strengthened in early 2025, with investors pouring significant amounts of money into U.S. equity markets, aligning with analysts’ expectations of continued outperformance. Image: Goldman Sachs Global Investment Research
U.S. Stocks – Cyclicals vs. Defensives Investor sentiment is often reflected in the performance of cyclicals versus defensives. Typically, expectations of economic growth lead to a preference for cyclicals, resulting in their outperformance relative to defensives. Image: Goldman Sachs Global Investment Research
S&P 500 Stock Splits – Median Relative Performance vs. Sector While stock splits do not inherently change a company’s value, the increased investor interest they generate often leads to short and medium-term outperformance relative to the sector. Image: BofA US Equity & Quant Strategy
Stocks – Cyclicals vs. Defensives Cyclicals and defensives are useful indicators of investor sentiment. As investors expect economic contractions, they often shift towards defensives, resulting in their outperformance compared to cyclicals. Image: Goldman Sachs Global Investment Research
U.S. Small Cap Stocks vs. U.S. Large Cap Stocks U.S. small caps are currently viewed as an attractive investment opportunity compared to U.S. large caps, with several factors suggesting potential outperformance over the next decade. Image: BofA Global Research
MSCI World Value vs. Growth Given the current market dynamics, will the outperformance of growth stocks over value stocks be reversed in the future, with value stocks potentially taking the lead? Image: Goldman Sachs Global Investment Research
Performance – Tech vs. S&P 500 Price Relative Will tech outperformance relative to the S&P 500 persist going forward? Image: BofA Global Investment Strategy
Performance – Semiconductors vs. S&P 500 The relative outperformance of semiconductor stocks compared to the S&P 500 has surged to its highest level since March 2000, indicating a bullish momentum that bodes well for the broader market. Image: BofA Global Investment Strategy
Russell 2000 Technology Sector Relative to Total Index U.S. small-cap technology stocks have exhibited a noteworthy level of outperformance within the universe of U.S. small-cap stocks, which can be attributed to higher growth potential and the ability to innovate and disrupt traditional industries. Image: Morgan Stanley Wealth Management