Small has been beautiful this year on Wall Street. That’s because the smallest-cap stocks within the S&P 500
have far outperformed the largest-cap stocks since January. The eight stocks with the largest market caps at the beginning of the year—which at the time represented a top-heavy 27.2% of the total market cap of the entire index — have lost an average of 40.4% so far this year (through Nov. 21), according to FactSet. That’s more than three times the 9.5% average loss among the remaining 490+ stocks in the S&P 500.
is the biggest year-to-date loser, down 67.3%, but it certainly isn’t the only stock bringing down the average. NVIDIA
the 8th largest stock in the S&P 500 at the beginning of 2022, was down 47.9% through the end of October, and Amazon
the third largest, was down 44.5%. The chart below shows how the eight largest-cap stocks in the S&P 500 at the beginning of the year have lost more than the average.