The small-cap Russell 2000 index was up 3.6% in August, outperforming the large-cap Russell 1000s 1.38% return, confirmed Russell Investments spokeswoman Beth Leri.
Small caps now have outperformed large caps for four consecutive months, Christian Anderson, associate portfolio manager, said in a news release. The disparity in year-to-date returns widened to 8.4 percentage points at the end of August as the Russell 2000 reflected a 2.6% decline for 2008 and the Russell 1000 continued to show a double-digit decline.
Financial services firms make up three of the five top small-cap stocks in August.
The disparity between the large- and small-cap indexes was driven by the largest stocks in the Russell 1000 index. The megacap Russell 50 also had a negative return, coming in at -13.5% year-to-date through Aug. 29, Mr. Anderson said in the news release.