SOURCE: Russell Investments

Russell Investments

January 19, 2012 10:50 ET

Small Caps Outperformed Large Caps to Date in 2012, Russell Indexes

SEATTLE, WA--(Marketwire - Jan 19, 2012) - Year-to-date through January 18th, 2012:

  • The Russell Global ex-US Small Cap Index (+5.8%) outperformed the Russell Global ex-US Large Cap Index (+5.1%).

  • The Russell Developed Europe Small Cap Index (+6.2%) outperformed the Russell Developed Europe Large Cap Index (+3.7%).

  • The Russell 2000® Index of small cap U.S. stocks (+6.6%) outperformed the Russell 1000® Index of large cap U.S. stocks (+5.7%).

  • Similar small-cap sector outperformance within the Russell Developed Europe Index in 2012 has occurred in France, Italy and the Netherlands. Germany is the sole exception to this trend within the Russell Developed Europe Index in 2012, with the large cap sector outperforming the small cap sector year-to-date.

  • This is a reversal in fortune for the large cap sector which outperformed the small cap sector across all these indexes in 2011.

"Small cap stocks have traditionally led in the early stages of a recovery, and the global trend we see thus far in 2012 is encouraging," said Russell Europe's head of capital markets John Velis. "But we are still a long way from recovery in Europe and there are still a number of factors which need to fall into place."

2012 Year-to-Date (as of 1/18) Regional Performance: Large Cap vs. Small Cap

Index 2012 Returns as of Jan 18
Russell Global ex-US Small Cap Index +5.8%
Russell Global ex-US Large Cap Index +5.1%
Russell Developed Europe Small Cap Index +6.2%
Russell Developed Europe Large Cap Index +3.7%
Russell 2000 Index +6.6%
Russell 1000 Index +5.7%

2011 Regional Performance: Large Cap vs. Small Cap

Index 2011 Returns
Russell Global ex-US Small Cap Index -15.6%
Russell Global ex-US Large Cap Index -10.5%
Russell Developed Europe Small Cap Index -17.2%
Russell Developed Europe Large Cap Index -8.1%
Russell 2000 Index -1.0%
Russell 1000 Index +4.9%

2012 Year-to-Date (as of 1/18) Individual Country Performance: Large Cap vs. Small Cap

Index 2012 Returns as of Jan 18
Russell France Small Cap Index +6.4%
Russell France Large Cap Index +3.5%
Russell Germany Small Cap Index +6.6%
Russell Germany Large Cap Index +7.8%
Russell Italy Small Cap Index +2.2%
Russell Italy Large Cap Index +0.7%
Russell Netherlands Small Cap Index +3.7%
Russell Netherlands Large Cap Index -0.4%

2011 Individual Country Performance: Large Cap vs. Small Cap

Index 2011 Returns
Russell France Small Cap Index -21.4%
Russell France Large Cap Index -12.7%
Russell Germany Small Cap Index -17.7%
Russell Germany Large Cap Index -14.5%
Russell Italy Small Cap Index -28.6%
Russell Italy Large Cap Index -20.8%
Russell Netherlands Small Cap Index -27.7%
Russell Netherlands Large Cap Index +3.0%

Opinions expressed by Mr. Velis reflect market performance and observations as of January 18th, 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.

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

Disclaimer: http://www.russell.com/indexes/about/index_alerts.asp#disclaimer