Small cap growth stocks have rallied sharply since April 8, with the Russell 2000 Growth Index up 34.2%, but large cap growth stocks still outpaced them with a 40.5% gain over the same period. Over the past decade, small growth stocks have significantly lagged large growth, delivering less than half the return. 

Research shows that active management has historically outperformed the Russell 2000 Growth Index, though recent rebounds have favored the passive benchmark as high-beta and unprofitable companies surged. 

Sector and industry standouts in small growth include materials, industrials, technology, and niche firms such as Credo Technology and Joby Aviation, with many of the highest returns concentrated in the most volatile stocks. Active small cap growth funds typically avoid the riskiest and least profitable names, which hurt short-term performance but aligns with evidence that profitable small caps outperform over time. 

Finsum: Active strategies may still offer investors a more resilient path within small growth equities despite the recent rally.