The improvement for small caps continues to shine within the ranks of DALI as Small Caps occupy the top three style boxes. 

The improvement for small caps continues to shine within the ranks of DALI as Small Caps occupy the top three style boxes.  Small Cap Value has moved up into the number two position, which is the first time since 2007 Small Cap Value has been ranked this high.

As strong as Large Caps, especially Large Growth, has been over the past few years, we are seeing that leadership now point towards Small and Mid Caps.  The Russell 2000 Value Index RUJ is the best performing Style box this year with a return of nearly 23% (thru 3/9); however, it has consistently been the worst performing in recent years.  Prior to 2021 Small Cap Value was the worst performing style in five out of the seven years.  On the other hand, Large Cap Growth was the best performing style in five out of the past six years. 

All of this is to say that small caps have established themselves as the leadership area of the market, and these trend can last, in some cases, for years.  Prior February of this year Large Cap Growth enjoyed a lead with respect to its ranking in DALI over Small Cap Value for nearly six years!  And before that, Small Cap Value was ranked higher than Large Growth for the vast majority of the period from the end of 2002 until mid-2015!