Large cap funds keep pace with benchmarks in April

Published 08/05/2025, 11:24
© Reuters.

Investing.com -- Bank of America noted that large cap active funds matched their benchmarks in April, with about half outperforming, slightly better than the historical monthly average since 1991.

Despite a volatile market influenced by headlines and macroeconomic factors, which saw average stock correlations reach their highest point since 2022, 54% of large cap active funds have outperformed their Russell benchmarks year-to-date (YTD), improving from 36% in 2024.

In the large cap category, value funds stood out in April, ending a three-month streak of underperformance. Sixty-five percent of value funds outperformed, compared to 51% of growth funds and 45% of core funds. This success comes despite the Russell 1000 Value Index lagging behind the Russell 1000 Growth Index by nearly 5 percentage points.

However, value funds are still trailing for the year after a weak first quarter, with only 44% surpassing their benchmark, which is less than the YTD performance of growth and core funds.

Small and mid-cap (SMID) fund managers, on the other hand, did not fare as well in April. Only 35% of small cap funds and 17% of mid cap funds outperformed their respective Russell benchmarks. The underperformance was widespread, with small cap growth funds being the only SMID category to outperform, and even then, by a very narrow margin.

Regardless of the challenging month, 60% of small cap funds are outperforming YTD, a stark contrast to the 19% of mid cap funds achieving the same.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers
© 2007-2025 - Fusion Media Limited. All Rights Reserved.