Why large companies have outperformed in 2017

Since the start of the year, large cap stocks have outperformed small cap stocks in both the US and the Australian markets. In the US, the Russell 2000. an index of small companies, has underperformed the S&P 500 and the Nasdaq by 4% and 8%, respectively. In Australia, the MSCI Australian Small Cap index has underperformed the ASX 200 by 3%. Here’s why.