SOURCE: Russell Investments

Russell Investments

March 07, 2012 12:42 ET

Russell Indexes: As of March 6th, U.S. Small Cap Stocks as Measured by the Russell 2000® Index Returned +6.4% Year-to-Date & 19.4% Since September 30th

SEATTLE, WA--(Marketwire - Mar 7, 2012) -

  • Small cap U.S. stocks, as measured by the Russell 2000® Index, returned +6.4% year-to-date as of March 6th, 2012 compared to a +7.6% return for large cap U.S. stocks, as measured by the Russell 1000® Index.

  • When examining performance since the end of the third quarter (September 30th) through March 6th, small cap U.S. stocks, as measured by the Russell 2000® Index, returned +19.4% as compared to a +17.3% return for large cap U.S. stocks, as measured by the Russell 1000® Index.

"Smaller company stocks in the U.S. appear to have benefitted from a number of favorable factors over the last several months, such as reduced macroeconomic uncertainty, improving forecast earnings relative to larger cap stocks, and lower exposure to European economies than large cap stocks," said Jon Eggins, small cap equity portfolio manager at Russell Investments. "However, small cap valuations compared to large caps remain a watch point following their recent outperformance. As we have seen recently, small cap stocks typically trade with higher beta relative to large caps, so any reversal of the recent supportive economic and market conditions could be a headwind for the sector in the short term."

Russell Index YTD
(through March 6, 2012)
September 30th, 2011 through March 6, 2012
Russell 2000® Index 6.4% 19.4%
Russell 1000® Index 7.6% 17.3%

Source: Russell Investments

Opinions expressed by Mr. Eggins reflect market performance and observations as of March 5th, 2012 and are subject to change at any time based on market or other conditions without notice. Please remember that 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 Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here: http://www.russell.com/indexes/data/daily_total_returns_global.asp

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