Up 2.5% for the year, the Russell Microcap Index - its members' median market value is $221M - is leading the major stock indexes (including a 1.3% gain today, the Russell Microcap Index ETF IWC is up 4% YTD).
The Russell 2000 small-cap index (median size $699M) is ahead 0.1%. The Russell 1000 (median size $7.4B) is down 0.1%.
If small is better, than why isn't the Russell 2000 benefitting, and if size is bad, why isn't the Nasdaq 100 (up 2%) lagging?
Instead microcap outperformance is instead about biotech - think Intercept Phamra up 447% YTD, Ligand up 44%, Keryx up 28%, Sangamo up 45%. Intercept alone accounts for about a quarter of the microcap's index performance this year, according to the team at Citi.