SOURCE: Russell Investments

Russell Investments

October 12, 2012 14:39 ET

U.S. Small Cap Stocks Showed Negative Returns for the October Month-to-Date as of 10/11 as Reflected by the Russell 2000® Index

SEATTLE, WA--(Marketwire - Oct 12, 2012) - The Russell 2000® Index of small cap U.S. stocks returned (-0.9%) in October month-to-date as of October 11th, versus a (-0.4%) return for the Russell 1000® Index of large cap U.S. stocks. This follows a September in which small caps outperformed large caps, with a 3.3% return for the Russell 2000 Index versus a 2.6% return for the Russell 1000 Index. Year-to-date as of October 11th, large cap U.S. stocks have outperformed small cap U.S. stocks, with a 15.8% return for the Russell 1000 Index relative to a 13.2% return for the Russell 2000 Index. 

"Small cap U.S. stocks have been somewhat overshadowed this year, with investors gravitating toward U.S. large caps in a flight to perceived safety and quality. And this is despite the Russell 2000® Index continuing to test an all-time high reached in May of last year," said Russell Investments chief markets strategist Stephen Wood. "While a number of uncertainties loom in the U.S. and globally right now that can impact U.S. stocks, including quarterly earnings and the coming US election and Chinese political transition, an accommodative Fed and more policy clarity globally could cause investors to take on more risk if appropriate and look at smaller companies."

Index October MTD a/o 10/11 September 2012 3rd QTR 2012 YTD a/o 10/11
Russell 1000® Index -0.4% 2.6% 6.3% 15.8%
Russell 2000® Index -0.9% 3.3% 5.3% 13.2%

Source: Russell Investments

The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here: