Small-cap stocks have lagged the rest of the market by a significant margin so far in 2023. This is evidenced by the fact that the small-cap focused Russell 2000 Index (RUT) is roughly flat on the year, while the Nasdaq Composite ($NASX) has gained about 30%, and the S&P 500 Index ($SPX) is more than 13% higher.
That small-cap underperformance has continued in recent months, too, as heightened volatility has pressured markets lower across the board. Since the start of August, the RUT is off more than 11%, while the Nasdaq and S&P have pulled back about 5% each in this time frame.
