SOURCE: Russell Investments

Russell Investments

January 24, 2013 09:25 ET

Russell Emerging Markets Index Outperformed Russell 3000® Index and Russell Developed ex-US Index in 2012

SEATTLE, WA--(Marketwire - Jan 24, 2013) - The Russell Emerging Markets Index gained 19.1% in 2012, outperforming the U.S. broad-market Russell 3000® Index (+16.4%) and the Russell Developed ex-US Index (+17.4%), which tracks the performance of developed countries outside of the United States. 

Conversely, over the past three years ending January 18, 2013, the Russell 3000 Index (+12.1%) outperformed both the Russell Emerging Markets Index (+5.5%) and the Russell Developed ex-US Index (+4.8%) by 6.6% and 7.3%, respectively, on an annualized basis.

Year-to-date, the Russell Emerging Markets Index has returned 2.8%, slightly less than the Russell 3000 Index (+4.5%) and the Russell Developed ex-US Index (+3.2%) through January 18, 2013.

"While emerging markets outperformed developed markets in 2012, much of their performance was driven by an improved outlook in the Eurozone coupled with a strong performance in the U.S. as illustrated by the index returns," said Gustavo Galindo, Emerging Markets Portfolio Manager with Russell Investments. "In this current risk-on environment, investors may be attracted to emerging markets as a bargain investment, though it is not clear for how much longer this will last."

               
  Index   2013 YTD Total Returns as of January 18   2012 Total Returns   3 Year Annualized Returns as of January 18
  Russell Emerging Markets Index   2.8%   19.1%   5.5%
  Russell 3000® Index   4.5%   16.4%   12.1%
  Russell Developed ex-US Index   3.2%   17.4%   4.8%
               

Source: Russell Investments

Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries. Securities may be less liquid and more volatile than US and longer-established non-US markets.

Opinions expressed by Mr. Galindo reflect market performance and observations as of January 18, 2013 and are subject to change at anytime based on market or other conditions without notice. Please remember that past performance does not guarantee future performance.

Returns provided are US dollar-denominated.

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.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.