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Market Update

What's Dragging Down Small Growth?

As the value rotation continues, healthcare and tech names lag.

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As the rotation of investor dollars from fast-growing company stocks into value names continued in May, small-growth names have been left in the dust.

Last month, losses in biotech and solar stocks led broader declines in small-cap health care and technology shares. Meanwhile, the rebound in energy stocks--a group which no longer can count any names in the small-growth bucket--has contributed to the group’s lagging performance.

Lauren Solberg does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.