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Byline: Ken Hoover
Domestic stock funds posted modest gains in May, giving them a two-month winning streak.
The gains didn't seem like much. But given the yearlong stock market slump, they've got to cheer investors.
The average U.S. diversified stock fund rose 1% in the month, according to Lipper Inc. That compares with a 0.51% gain for the month in the S&P 500, a 0.27% drop in the Nasdaq and a 2.3% gain in the small-cap Russell 2000.
Year to date, the average stock fund slipped 4.65%. That looks pretty good next to a 4.88% decline in the S&P 500 and a 14.57% drop in the Nasdaq. But check out the Russell 2000: It climbed 2.68%.
Therein lies what's going on in the market. Small stocks are outperforming big ones.
And value stocks are beating growth stocks.