The SPDR S&P 500 ETF Trust has generated a total return of 26.4 percent year-to-date, but much of those overall gains have been driven by a handful of megacap stocks. In fact, 65 stocks in the S&P 500 are currently in the red year-to-date in 2021.
When a stock struggles in a bull market, it’s often an indication that there’s something fundamentally wrong with the underlying company’s business. However, sometimes market technicals, cyclicality, investor sentiment or even a healthy valuation reset can trigger temporary underperformance in high-quality stocks.
