Can Small Caps Beat the SPY in 2026?

Can Small Caps Beat the SPY in 2026?

Quick Read Small caps have underperformed the S&P 500 for years despite trading at lower valuations. Rate cuts reduce small-cap debt burdens and give larger firms more purchasing power for acquisitions. Holding both small caps and large-cap tech provides exposure to value opportunities and higher-multiple AI growth. Are you ahead, or behind on retirement? SmartAsset’s free tool can match you with a financial advisor in minutes to help you an…

3 reasons why small cap stocks are crushing the S&P 500 so far in 2026

Michael M. Santiago/Getty ImagesSmall cap stocks are crushing the broader market this year.It's quite the shift from the past two years, when they've gotten trounced.Outlined below are three main reasons for the sudden outperformance.I'd like to issue an apology.It's directed at small-cap stocks, which populate the recently unloved tier of companies with market caps between $250 million and $2 billion.I'm here to say I'm sorry that I overlooked …

Russell 2000 Hits Record as Small Caps Beat Big Tech — Why Wall Street Watches the First 10 Trading Days

NEW YORK, Jan 20, 2026, 06:04 EST Smaller-company stocks finished last week strong, with the Russell 2000 hitting a record close on Jan. 16, outpacing the S&P 500 for the 11th session in a row, the Wall Street Journal reported. The index has surged roughly 7.9% this year, leaving the early gains in the S&P 500 and Nasdaq in the dust. (Wall Street Journal) That early edge counts since the U.S. rally has leaned heavily on mega-cap tech for years. …