SOURCE: Russell Investments

Russell Investments

June 16, 2015 15:32 ET

Growth & Value: US Growth Stocks Have Outperformed Value Stocks Across All Cap Tiers in the Last Year as Russell Prepares for Upcoming Index Reconstitution

SEATTLE, WA--(Marketwired - Jun 16, 2015) - Growth-oriented US stocks outperformed value-oriented US stocks as reflected by the Russell 1000® and Russell 2000® Growth & Value Indexes for the first quarter and year-to-date and since the completion of the last Russell Indexes reconstitution at U.S. markets close on Friday, June 27, 2014. The growth to value differential across these various time periods has been the largest on the small cap end of the spectrum.

Investors will be focused on the Russell Indexes in the coming weeks, as Russell prepares for its annual indexes reconstitution. At reconstitution, the entire Russell family of global indexes, including the Russell 1000® Index and Russell 2000® Index, are rebalanced to ensure that the indexes continue to accurately reflect the market. As part of the reconstitution process, which will conclude at U.S. market close on Friday June 26th, composition, ranges and breakpoints between U.S. large and small-cap stocks will be adjusted to reflect the current market environment.

Rolf Agather, Head of North America Research, FTSE Russell, said:
"A regularly scheduled, transparent reconstitution process is a key feature of truly representative and objective benchmarks," said Rolf Agather, head of North America research at FTSE Russell. "Each year, the Russell rebalance recalibrates the Russell Indexes to account for notable shifts in the past year. When our annual reconstitution concludes for this year, it will be interesting to observe how the shift in the Russell Indexes corresponds with style performance in the last year across US cap tiers."

For more information on the Russell Indexes and Russell Indexes annual reconstitution, go to the FTSE Russell website.

Russell Index   2015 YTD as of June 12th   1st Quarter 2015   6/30/2014-6/12/2015 (Since Completion of 2014 Russell Reconstitution)
Russell 1000® Index   3.2%   1.6%   9.0%
Russell 1000® Growth Index   5.2%   3.8%   12.0%
Russell 1000® Value Index   1.1%   (-0.7%)   5.9%
Russell 2000® Index   5.6%   4.3%   7.6%
Russell 2000® Growth Index   9.1%   6.6%   13.0%
Russell 2000® Value Index   2.1%   2.0%   2.4%

Source: FTSE Russell Indexes. Total returns, US dollar denominated. Past performance is no guarantee of future results.

About FTSE Russell:

FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally and trading on over 25 exchanges worldwide.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Leading asset owners, asset managers, ETF providers and investment banks use FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering.

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