SMB Index: Big Gains for Local Stocks in October

This monthly feature from SurePath Capital Partners looks at the relative optimism about a range of public companies working with SMB clients. Follow the SurePath SMB Index in real time by clicking here. 

The SCP SMB Index experienced a scorching start to Q3 gaining 6.8% in October, outpacing all other major indices we track. This comes after a 2.1% rise in September.

 

The SCP SMB Index gained 6.8% in October. The S&P 500 and Dow Jones gained 2.5% and 4.3%, respectively, while the Nasdaq was up 3.8% during the month of October.

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 October 31, 2017:

• SCP SMB Index — 144.65%
• S&P 500–127.83%
• Nasdaq — 136.63%
• Dow Jones — 136.15%

Monthly gains

During October the SCP SMB Index climbed from $118.74, up to $126.77 at the end of the month.

In comparison, during the month of October, other benchmark indices made the following moves:

• the S&P 500 was up 2.5% during the month of October
• the Nasdaq increased 3.8% from the end of September
• the Dow Jones climbed 4.3% since the end of September

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) accounts for ~57% of the total market cap of all 35 companies and therefore the movement of these 5 companies influence the SMB Index as a whole.

For the first time, Square cracked the Top 5 Constituents list after climbing 29% in October. First Data Corp was the only company that dropped during October, falling 0.4%.

Here are the top 5 gainers and losers for October

Atlassian led the gainers, up 40.2% in the month of October, while Shopify led the list of losers down 14.6% during October — which also displaced them on the Top 5 Constituents leaderboard.

25 out of the 35 companies in the SCP SMB Index experienced gains in the month of October.

You can follow the SurePath SMB Index in real time at: http://www.surepathcapital.com/smb-index