Skip to Content
Fund Spy

Small-Cap Value Comes Back--But Not All the Way

It's too soon to tell whether small-value's November resurgence will endure.

Mentioned: , , , , , ,

Small-cap value has surged back in the fourth quarter, but it still has a long way to go to recoup years of relative underperformance. The Russell 2000 and Russell 2000 Value indexes rose 18.4% and 19.3%, respectively in November, their best absolute gains since their December 1978 inceptions. The Russell 2000 Growth Index, however, posted a strong 17.6% rise itself and remained far ahead of both its sibling benchmarks for the year and over longer trailing periods through November. The Russell 2000 Value’s paltry 0.8% annualized trailing three-year gain through month's end, for instance, trailed the Russell 2000 Growth Index’s advance by 12 percentage points.

Still, many investors wonder whether November’s sharp value rally signals a sea change. The answer is maybe. It’s too soon to tell.

Linda Abu Mushrefova does not own shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.