Inflation Mitigation...Utilities Outshine Energy

After generating data going back 20 years, interesting themes emerged. As clean energy becomes more prominent for both generators and providers, the lines become blurred between Small Cap Utilities and Small Cap Energy sectors. Unlike large-caps, historically, small-cap utilities fared quite well during rising interest rate periods. Lastly, unlike large-caps, historically, small-cap energy stocks too fared well during rising interest rate periods, although outperformance to large-cap peers was less consistent.