August 2016 — Movements in the SMB Index
A recap of SMB Index performance for August 2016
The SCP SMB Index finished August 2016, outpacing other benchmark indices, for the 4th consecutive month.
August was a relatively flat month for the major indices. The SurePath SMB Index led the pack gaining 1.8%, followed by the Nasdaq adding 1.0% since July.
Returns since inception (indexed at Jan 4, 2016)
Since the inception of the SCP SMB Index in January 4, 2016 (where 100% is no change), here are the returns till August 31, 2016:
- SCP SMB Index — 117.31%
- S&P 500–107.86%
- Nasdaq — 106.33%
- Dow Jones — 107.30%
During the month of August, the SCP SMB Index rose 1.8%, closing the month at $116.74 up from $114.69 at the end of July 2016.
In comparison, during the month of August, other benchmark indices made the following gains:
- the S&P 500 was down 0.1% from the end of July
- the Nasdaq was up 1.0% from the end of July
- the Dow Jones was down 0.2% from the end of July
Drivers of movement
The SCP SMB Index is weighted based on the market capitalization of the 35 companies that are included in the index. The market cap of the top 5 companies (by market cap) account for ~64% of the total market cap of all 35 companies and therefore the movement of these 5 companies influence the SMB Index as a whole. We began the index with 42 companies, but have lost 5 to acquisitions and removed 2 others after determining that they did not completely fit with the SMB focus of the index. (More on that here.)
In August 2016, all 5 companies experienced gains over July. First Data Corp led the way for the second consecutive month gaining 12.3%.
Here are the top 5 gainers and losers for August
All of the top gainers increased over 20% since July, with Stamps.com leading the way up 27.6% (after being down 13% in July). Marchex led the list of top 5 losers in July, falling 12.9%.
Here’s how all 35 companies stacked up in the month of August
26 out of the 35 companies (74%!) in the SCP SMB Index experienced gains in the month of August.
You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index
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