SOURCE: Russell Investments

Russell Investments

August 07, 2013 09:20 ET

Russell Fundamental US Index Outperforms Russell 3000® Index as Equities Continue Rally From 2009 Lows

SEATTLE, WA--(Marketwired - Aug 7, 2013) - Since reaching a post-financial crisis low in March 2009 (389.61 on 3/9/09), the Russell 3000® Index has returned 162% as of 8/2/13. During this same period of time, the Russell Fundamental US Index (based on the Russell 3000 Index) is up over 196%. Unlike traditional market cap weighted indexes, the Russell Fundamental US Index selects and weights securities according to fundamental measures of company size: adjusted sales, operating cash flow, and dividends plus buybacks. 

August Highs:

"While Russell's core indexes have continued to hit new highs through the summer, in some cases we are seeing even greater performance from our smart beta indexes such as the Russell Fundamental Indexes," said David Koenig, CFA, FRM, investment strategist with Russell Indexes. "Investors using strategies based on fundamentally weighted indexes may be able to gain differentiated beta exposures while maintaining the diversification, transparency and liquidity of traditional indexes."

Russell Index Returns
Index 3/9/09 - 8/2/13
Russell 3000 Index 162%
Russell Fundamental U.S. Index 196%

Source: Russell Investments. Returns are denominated in US dollars.

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. 

Opinions expressed by Mr. Koenig reflect market performance and observations as of August 2, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance

This material is not an offer, solicitation or recommendation to purchase any security.

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.

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.