Investing with Market Cap in Mind

¹A company's market capitalization (or market cap), calculated as the number of outstanding shares multiplied by the price per share, is a measure of its size and value.

Small, midsize, and large companies often perform differently in response to economic and market conditions.

Sizing up stocks

Large companies tend to be long-established and more complex.

²In the past, large caps were considered to have less growth potential.

Small companies are often limited to a single line of business.

Midsize companies may have longer track records.

Types of funds

There are two types of funds that invest based on market cap. Index funds are passively managed.Actively managed funds include stocks chosen by analysts.

Small-cap and midcap stocks tend to be traded less frequently.

Performance Perspective

Large-cap stocks have produced the highest returns over the past year.

Annualized returns

Source: London Stock Exchange Group, 2025.

³There is no standard way to classify stocks.

S&P 500: Median market cap of $37.0 billion

S&P MidCap 400: Median market cap of $6.8 billion

S&P SmallCap 600: Median market cap of $2.0 billion

Russell 2000: Median market cap of $1.0 billion

Diversification is a method used to help manage investment risk.

Mutual funds and ETFs are sold by prospectus.

1) The Wall Street Journal, September 6, 20242) Reuters, January 3, 20253) Dow Jones Indices, 2024