Investors looking for maximum dividend yields favoured the big players over smaller, more volatile stocks with less liquidity. But there were some promising signs for the small miners.

The Small Ordinaries Index rose to 2171 points points, or 6 per cent from December 31 to March 31.  The ASX top 50 companies finished the quarter on 6057 points, up 8.8 per cent while the broader All Ordinaries Index picked up to reach 5859.1, or 8.78 per cent.

Tim Rocks, Commonwealth Bank of Australia's head of equity strategy, described small caps as "an ongoing disappointment" compared to the rest of the market.

"A lot of that reflects the poor performance of mining and mining-related companies," Mr Rocks said, referring to the smaller, higher miners that suffered more at the hands of falling commodity prices.

He expected said the "overwhelming market dynamic" away from bonds toward stocks would continue to disproportionately benefit large caps, particularly the big four banks, Telstra and other utility and infrastructure companies.

"These refugees from bond markets want a bond-like investment," he said. "Investors are very much focused on yield and being defensive." He saw large stocks' greater liquidity as another lure toward "terribly expensive" parts of the market as speculation around global central bank action created uncertainty.

"There's a premium for being close to the exit," Mr Rocks said.

Overall, the average year to date yield among the Small Ordinaries was 4.1 per cent, compared to the ASX100's 4.5 per cent.

But a recent Credit Suisse research note showed  2014-15 was the fifth consecutive year of negative earnings revisions for small-cap stocks.

Stephen Wood, portfolio manager at UBS Asset Management's small companies team, said the lack of financial companies and the two major supermarkets made a big difference to the Small Ordinaries performance.

But he expected companies with less market capitalisation would continue to see more capital-raising activity. Mr Wood said of the 37 companies which raised more than $50 million in initial public offerings throughout 2014, only two of those were in the ASX100.

"Now the index is off to a good start … we would expect that the IPO tidal wave that we've seen would return," he said. "The key trend for the next quarter will be IPOs."

Mr Wood said the large gap in performance between small industrials and small miners through 2013 and 2014 had narrowed considerably in the first quarter of 2015. He put healthier returns from mining stocks down to "reward for risk" and a recognition of the good businesses which remained in the sector, such as nickel-producer Western Areas.