Francis Gannon on Nasdaq Trade Talks—Royce
article 07-06-2023

Francis Gannon on Nasdaq Trade Talks

Francis joined host Jill Malandrino on Nasdaq Trade Talks to discuss the historical patterns that support our bullish long-term view for small caps.


On 6/28/23, Co-CIO Francis Gannon joined host Jill Malandrino on Nasdaq Trade Talks to discuss the historical patterns that may indicate better long-term small-cap performance.

Francis mentioned that five-year periods with lower-than-average annualized returns for the Russell 200 Index have nearly aways followed by five-year periods with above-average returns for the small-cap index. The Russell 2000’s average annual total return for the period ended 6/30/23 was 4.2%.

Francis also talked about the high degree of concentration within large-cap indexes—which has not been as high as it is currently since the “Nifty Fifty” market of the 1970s and was followed by a long run of small-cap outperformance.

You can watch Francis’s interview here.

Important Disclosure Information

Mr. Gannon’s thoughts and opinions concerning the stock market are solely their own and, of course, there can be no assurance with regard to future market movements. No assurance can be given that the past performance trends as outlined above will continue in the future.

The performance data and trends outlined in this presentation are presented for illustrative purposes only. Past performance is no guarantee of future results. Historical market trends are not necessarily indicative of future market movements.

Frank Russell Company (“Russell”) is the source and owner of the trademarks, service marks and copyrights related to the Russell Indexes. Russell® is a trademark of Frank Russell Company. Neither Russell nor its licensors accept any liability for any errors or omissions in the Russell Indexes and/or Russell ratings or underlying data and no party may rely on any Russell Indexes and/or Russell ratings and/or underlying data contained in this communication. No further distribution of Russell Data is permitted without Russell’s express written consent. Russell does not promote, sponsor or endorse the content of this communication. The Russell 2000 Value and Growth indices consist of the respective value and growth stocks within the Russell 2000 as determined by Russell Investments. The Russell 2000 is an unmanaged, capitalization-weighted index of domestic small-cap stocks. It measures the performance of the 2,000 smallest publicly traded U.S. companies in the Russell 3000 index. The performance of an index does not represent exactly any particular investment, as you cannot invest directly in an index. The CBOE S&P 500 Volatility Index (VIX) measures market expectations of near-term volatility conveyed by S&P 500 stock index option prices. It is the square root of the risk-neutral expectation of the S&P 500 variance over the next 30 calendar days and is quoted as an annualized standard deviation.

This material is not authorized for distribution unless preceded or accompanied by a current prospectus. Please read the prospectus carefully before investing or sending money. Smaller-cap stocks may involve considerably more risk than larger-cap stocks. (Please see "Primary Risks for Fund Investors" in the prospectus.)



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