Smallcaps have significantly underperformed largecaps in August, as Josh Lipton points out....

|By:, SA News Editor

Smallcaps have significantly underperformed largecaps in August, as Josh Lipton points out. Largecaps are currently the better value at 13x 2010 estimates; Smallcaps trade at 19x 2010 P/Es. Dividends may offer another explanation for the shift to largecaps: SPDR Dow 30 ETF (DIA) yields 2.6% vs. 1% for iShares S&P Smallcap 600 (IJR).