While the S&P 500 is essentially flat on the year, growth stocks have been, well, growing.
A basket of 40 stocks that are showing secular growth has risen more than 15 percent in 2015, versus a rise of just over 1 percent for the overall S&P index.
To construct the basket, RBC Capital Markets selected those nonfinancial companies showing revenue growth greater than 7.5 percent. This captures tech stocks like Facebook and Salesforce.com, consumer discretionary names like Under Armour and Netflix, and health-care stocks like Allergan and Biogen, among other names and sectors.
Some might take the growth stocks outperformance as a short-term trend, and perhaps the harbinger of a relative decline for the group. But RBC's chief U.S. market strategist, Jonathan Golub, says the macro environment makes the move rational.
"In a slower-for-longer economic environment, secular growth companies—those less dependent on GDP—should outperform," he wrote in a Monday note. "Furthermore, an analysis of these names indicates that their top-line fundamentals should continue to improve relative to the broad market."