SOURCE: Russell Investments

Russell Investments

March 04, 2015 13:58 ET

Growth Indexes Get More Dynamic in 2015; Russell Indexes

U.S. Growth Stocks Have Continued to Outperform U.S. Value Stocks While Shifting From Defensive to Dynamic Orientation Year-to-Date as of March 2nd

SEATTLE, WA--(Marketwired - Mar 4, 2015) - Both U.S. large and small cap stocks, as reflected by the Russell 1000® Index and Russell 2000® Index, respectively, have been driven by growth-oriented stocks in the last 12 months as of March 2. And yet while defensive-oriented growth stocks had the strongest performance in the last 12 months, 2015 to date as of March 2 has seen a notable shift in the growth area toward more dynamic-oriented stocks and sectors.

Growth stocks have outperformed value stocks across large and small caps in the U.S. by a notable margin in the last year with the performance margin getting wider in 2015 as of March 2, as measured by the Russell 1000® and Russell 2000® Growth Indexes. 

And while defensive-oriented growth stocks outperformed dynamic-oriented growth stocks in the U.S. across large- and small-cap stocks in the past year, the Russell combined style indexes show a clear shift toward dynamic-oriented stocks in 2015 as of March 2. 

Tom Goodwin, PhD -
Senior Research Director, Russell Indexes
"Russell developed its combined style indexes to help investors take a step beyond traditional growth and value performance distinctions in market analysis to understand what types of stocks are driving these two styles. For instance, growth may be leading value during any given period, with growth managers focusing more on defensive-oriented names. On the other hand, value may be leading growth during a certain period, with value managers favoring more dynamic-oriented names. While growth-oriented U.S. stocks have clearly been in favor over the last year across all cap tiers, Russell's combined style indexes show us a clear shift by growth investors toward dynamic-oriented stocks and away from defensive-oriented stocks in 2015. Defensive stocks typically have relatively high quality characteristics such as earnings stability and low market volatility, while dynamic stocks typically have weaker quality and greater realized volatility."

Russell Indexes Performance as of March 2nd
Index YTD as of 3/2/15   12 Months Ended 3/2/15
Russell 1000® Index 3.5%   15.6%
Russell 1000® Value Index 1.1%   14.0%
Russell 1000® Growth Index 5.9%   17.2%
Russell 1000® Growth-Defensive Index™ 4.9%    17.8%
Russell 1000® Growth-Dynamic Index™ 6.9%   16.4%
Russell 2000® Index 3.3%   6.4%
Russell 2000® Value Index 1.0%   4.7%
Russell 2000® Growth Index 5.6%   8.3%
Russell 2000® Growth-Defensive Index™ 3.9%       9.8%
Russell 2000® Growth-Dynamic Index™ 6.9%   7.0%

For more information on the Russell Stability Indexes Indexes including a recent research report on the performance of Russell 1000® combined style indexes in various market conditions, go to the Russell Indexes website.

Source: Russell Investments. Total returns, US dollar denominated.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment.

Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Russell Investments is the owner of the trademarks, service marks and copyrights related to its respective indexes.

Opinions expressed by Mr. Goodwin reflect market performance as of March 2, 2015 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

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