FRANdex continued to outperform both the S&P 500 and Russell 2000 in Q2 2017. For the quarter, the S&P 500 was up 2.57%, and the Russell 2000 gained 2.08%. Franchise companies increased by 6.42%. The food segment led gains with a 7.64% return and non-food brands registered a 5.64% return.
Small-caps have struggled thus far in 2017, and while they are modestly positive for the year, broader equity gains have been led by the market’s largest companies. Going forward, small-cap stocks are expected to perform better in light of an anticipated rise in interest rates, and increase in market volatility later this year driven by the uncertain political climate.