SOURCE: Russell Investments

Russell Investments

January 31, 2013 09:15 ET

Russell 1000® Index Nears an All-Time High and Potential Record Return for Month of January

Strong Performance of Russell Midcap Index Has Helped Drive Russell 1000® Index Closer to Milestones

SEATTLE, WA--(Marketwire - Jan 31, 2013) - The U.S. large cap Russell 1000® Index has gained 6.01% YTD through January 29, and the January month-to-date return for the index is approaching a record, as only 1989 (6.92%) has seen a stronger January start for the Russell 1000 Index. As stocks have surged so far in 2013, the Russell 1000 Index has steadily approached its all-time high of 852.32 last hit on October 9, 2007, however has yet to reach this milestone in part due to its market breakdown between mega cap and midcap stocks.

As part of its objective to provide a comprehensive representation of the full U.S. large cap opportunity set, the Russell 1000 Index is composed of 70% mega cap stocks and 30% midcap stocks, a level of midcap representation not typically seen in other "top heavy" large-cap indexes. The greater midcap representation within the Russell 1000 Index has helped drive long-term performance for the index; however this composition may have helped create a higher summit to reach for an all-time high.

"It is important for investors to build a portfolio that offers accurate and consistent exposure to their targeted asset classes. If an investor wants pure cap-tier exposure, their index needs to be modular, so they can be sure that they're getting the right exposure," said David Koenig, CFA, FRM, investment strategist for Russell Indexes. "Due to their objective and transparent methodology, the Russell Indexes very precisely reflect the markets and help investors pinpoint the exact cap-tiers that are performing well."

Russell Index Returns   MTD as of 1/29/13   One Year as of 1/29/13   Three Years as of 1/29/13   Five Years as of 1/29/13   Ten Years as of 1/29/13
Russell 1000 Index   6.01%   17.30%   14.69%   4.65%   8.32%
Russell Top50® Mega Cap Index   4.87%   16.41%   12.94%   3.60%   6.22%
Russell 200® Index   5.56%   17.10%   13.73%   3.88%   7.13%
Russell Midcap® Index   7.07%   17.68%   17.08%   6.62%   11.58%

Source: Russell Investments