Last year, the S&P 500 SPX returned 26.3%, but the Russell 2000 RUT small-cap index fell 16.9%, with dividends reinvested in both. Now take a look at the long-term returns of ETFs that track the two indexes:
| European Training Foundation | 3 years | 5 years | 10 years | 15 years | 20 years | |
|
SPDR S&P 500 ETF |
32% |
101% |
206% |
570% |
516% |
|
|
iShares Russell 2000 ETF |
4% |
51% |
93% |
376% |
349% |
|
|
Source: Factset |
||||||
The SPDR S&P 500 ETF Trust SPY has significantly outperformed the iShares Russell 2000 ETF IWM for all periods.
Some investors may point out that small caps are attractive because they trade at relatively cheap prices compared to the S&P 500. Mark Hulbert deflects this argument and explains why the S&P 500 is likely to continue to outperform the Russell 2000.
ETF Cover: BlackRock leads ETF market share, but 2023 inflows suggest Vanguard is catching up
More about the markets:
How to survive a financial disaster
Lynette Khalfani Cox immediately began building her own business after she was laid off from her job 20 years ago.
Beth Pinsker
Don't give up on your goals. That's advice from Lynette Khalfani Cox, author of Bounce Back: The Ultimate Guide to Financial Resilience, who explained to Beth Pinsker how she moved on after being laid off from her job 20 years ago.
Microsoft is approaching Apple
Getty Images
Technology stocks saw a significant rebound during 2023, led by the “Gig Seven.” Here's how this group has performed, with dividends reinvested, since the end of 2021:
| “The Magnificent Seven” companies. | tape | Return 2024 until January 4 | Return 2023 | Return 2022 | Back since the end of 2021 |
|
Apple company |
Camel, |
-6% |
49% |
-26% |
4% |
|
Microsoft Corporation |
MSFT, |
-2% |
58% |
-28% |
11% |
|
Alphabet Company Class A |
Google, |
-2% |
58% |
-39% |
-6% |
|
Amazon.com Inc |
Amzan, |
-5% |
81% |
-50% |
-13% |
|
Nvidia company |
ran out, |
-3% |
239% |
-50% |
63% |
|
Meta Platforms Inc. Class A |
dead, |
-2% |
194% |
-64% |
3% |
|
Tesla company |
TSLA, |
-4% |
102% |
-65% |
-32% |
|
Source: Factset |
|||||
Emily Barry explains how Microsoft is narrowing the valuation gap with Apple.
Ciara Lenane talks about how bond investors can get involved with the Magnificent Seven event in 2024.
Continue reading:
Deal news
ARM Holdings is nearing an initial public offering that is expected to value the company at up to $54 billion. But New Constructs, an independent equity research firm, is warning investors to stay away from ARM Holdings, James Rogers reports.
More news about mergers, acquisitions and corporate events:
-
Synopsys Closes to $35 Billion Acquisition of Ansys: Report
-
Disney says Blackwells Capital will nominate three people to its board of directors at its 2024 annual meeting
Long term and short term for two commodities
You might be surprised at how gold has performed as an investment since the turn of the century.
Getty Images
You might be surprised at how well gold has performed as an investment since the turn of the century, notes William Watts.
Mira B explains: Siphong How the Middle East conflict could help American oil producers. It also explains why oil prices have not risen, despite conflict in the Middle East and transportation disruptions.
is reading: Stop buying ExxonMobil and Occidental Petroleum stocks as oil prices expected to stagnate, analyst says
Which housing market will be the hottest (or most pressing) in 2024?
You might be surprised which cold-weather city made it to the top of Zillow's list of “Hottest Markets” for housing this year.
More housing market coverage from Aarthi Swaminathan:
Company News: Tesla loses the lead
Tesla's latest sales volume numbers were the weakest for many electric vehicle stocks.
Tesla company
Tommy Kilgore compiles electric vehicle sales data, including Tesla ceding the top spot to that company.
More company news from the ratings game:
Money thrives in a world of conflict
Quentin Futrell – The Moneyist – continues to help readers with tough financial (and family) questions:
Another earnings season begins next week
Illustration by MarketWatch/iStockphoto
The largest US banks will begin the fourth-quarter earnings season next Friday.
Steve Gelsey reports on what to expect for the big four US banks.
Here's a look at the 20 largest U.S. banks, with two standing out by a key performance metric as the industry approaches turning the corner.
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