Small-cap stocks steal the spotlight with explosive rally and high demand.

Investors are turning to small-cap stocks, with 12 stocks in the S&P 600 Small Cap ETF up 25% or more in June so far, outperforming the S&P 500. The top-performing small-cap stocks include industrial Circor International, struggling financial PacWest Bancorp, and consumer discretionary Designer Brands. While small-cap stocks tend to perform better than the S&P 500 in the long term, large-cap stocks tend to outperform in the following six and 12 months.