The average stock in the S&P 500 is up 2.3% year-to-date. But the average stock in the Russell 3,000 — an index that is made up of 98% of total stock market cap in the U.S. — remains down 2.3% YTD. That’s because mid-cap and small-cap stocks haven’t quite made up the losses they experienced to start the year as much as large-caps have.
Below we highlight the average year-to-date performance of stocks in each sector within both the S&P 500 (large-caps) and the Russell 3,000 (large, mid and small-caps). This helps to show which sectors are leading the market this year and which ones are lagging. Within the large-cap S&P 500, Telecom and Utilities stocks — both defensive sectors — are averaging the biggest gains. But those two sectors have a very small weighting in the S&P — they add up to roughly 6% of the index. It’s bigger sectors like Industrials, Energy, Consumer Discretionary and Consumer Staples that have led the charge higher.
On the negative side, Technology stocks in the S&P are just barely higher on the year, while Financial and Health Care stocks are averaging declines. Health Care has been the main area of pain for the S&P, with the average stock in the sector down 7.4% YTD.
And Health Care looks even worse when adding in mid-caps and small-caps. In the Russell 3,000, the average Health Care stock is down 19.9% year-to-date! That’s a huge outlier for a broad market that’s now flat on the year.