Now that the rally seems to have taken a breather, it’s a good point to see how the Barron’s 400 fared during the recent correction and rebound.
The short answer is, very well! The long answer can be seen in this chart:
From May 31 through June 11 the Barron’s 400 slightly trailed the Dow Jones U.S. Total Market Index, a broad benchmark that includes all exchange-listed stocks. Then, through the correction low on June 24, the Barron’s 400 maintained a small lead but closely followed the broad market.
That relationship continued as the rebound began, but the Barron’s 400 began picking up steam from June 27 onward. It outpaced the broad market by more than a full percentage point during the recovery and also for the May 31-July 15 period.
Here is a tabular summary:
It’s okay for a growth index to lose a little more than the broad market during a correction—if it more than makes up for that underperformance when the market bounces back.