Small caps are outperforming their larger-cap peers over the last three months by a wide margin. If you don't have the stomach for volatile names in the Russell 2000 index and still believe the rally has legs, there are other ways to play a comeback.
Smaller stocks in the — still far larger than any in the Russell 2000 — tend to beat their bigger peers in the index when small caps are back in favor.
Take the last few weeks as an example. While mega stocks like Apple, Alphabet and Microsoft have been a drag on the S&P 500, smaller stocks have held up better.
And if history is any guide, they may continue to outperform. Using Kensho, we looked for the best S&P 500 performers when the Russell 2000 climbs 10 percent or more in one month.
