Dow Outperforming S&P 500 Due To Large Cap Concentration

Over the past month we could hardly help but notice how much the Dow has outperformed the S&P 500. The Dow broke through the early June resistance earlier, and it has continued to perform better since then. Year-to-date the Dow has outperformed the S&P by 2.93%, with much of that gain resulting from the rally since July 11th.

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We looked one step further to see if there was any correlation between market capitalization and a stock's performance over the last month. The chart below shows all of the stocks in the S&P 1500 index, with market cap versus performance. The trend line does show a slight correlation between large cap names and better performance.