US small-cap stocks, as reflected by the Russell 2000® Index, have continued their upward march since the US presidential election, with a 15.5% rise from November 8 through January 11. This compares to a 7.5% increase for US large-cap stocks as reflected by the Russell 1000® Index for this same period. And across small- and large-cap US stocks, value-oriented US stocks have recorded higher values than growth-oriented US stocks in this period.
Yet thus far in 2017, these trends have been reversed, with the Russell 1000 Index value increasing 1.8% compared with a 1.2% increase for the Russell 2000 Index value. And, year-to-date, growth-oriented small- and large-cap oriented US stocks have recorded higher values than value-oriented US stocks across both cap tiers.
Tom Goodwin, CFA - Senior Index Research Director, FTSE Russell:
“As we approach the 30th anniversary of their founding, the Russell US Style Indexes remain excellent tools to gauge the level of US market style leadership at any one time. In the case of the Russell 2000 Value Index, the fact that it has recorded higher increases in index value than its growth index counterpart in the period since the US election seems to indicate that market participants are still finding value opportunities in this market. However, the increase in the value of the Russell 1000 Growth Index suggests a resurgence of growth-oriented US large cap stocks in our very short 2017 and certainly warrants further analysis.”
© 2017 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
Views expressed by Tom Goodwin of FTSE Russell are as of January 12th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell 2000® Index or the fitness or suitability of the indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.
Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets.