SOURCE: Russell Investments

Russell Investments

August 14, 2015 09:04 ET

Small & Mid-Caps Get Defensive: US Small & Mid-Cap Stock Style Measures Diverge From Mega Caps YTD, With Growth & Defensive Leading Value & Dynamic

SEATTLE, WA--(Marketwired - Aug 14, 2015) -  While US growth and dynamic-oriented stocks have led their value and defensive-oriented counterparts in the US mega cap space, as reflected by the Russell Top 200® Index, year-to-date as of August 7th, US mid- and small-cap stocks tell a slightly different story.

For US mid- and small-cap stocks, as reflected by the Russell Midcap® and Russell 2000® Index, year-to-date as of August 7th, growth stocks have led value stocks, however defensive stocks have led dynamic stocks. The outperformance for defensive versus dynamic-oriented mid- and small-cap stocks has occurred for the one year period as well.

Tom Goodwin, senior research director with FTSE Russell, said:
"The Russell style indexes were expanded four years ago to include defensive and dynamic measures in addition to traditional value and growth. We believe this allows investors to gain a more nuanced view of the dynamics at play currently in the market. For example, while many investors may equate growth-oriented stocks with dynamic-oriented stocks and value with defensive, and believe they will perform in line with each other, that is not always the case as shown by the market experience year-to-date."

For more information on the Russell US style indexes, go to the FTSE Russell website.

Russell Index 2015 YTD as of August 7th   One Year as of August 7th
Russell Top 200® Index 2.6%   11.3%
Russell Top 200® Growth Index 6.7%   16.2%
Russell Top 200® Value Index (-1.5%)   6.4%
Russell Top 200® Dynamic Index 5.0%   13.8%
Russell Top 200® Defensive Index 1.1%   9.7%
Russell Midcap® Index 2.0%   10.4%
Russell Midcap® Growth Index 4.5%   13.8%
Russell Midcap® Value Index (-0.5%)   6.8%
Russell Midcap® Dynamic Index 0.8%   7.2%
Russell Midcap® Defensive Index 5.1%   18.6%
Russell 2000® Index 0.9%   9.2%
Russell 2000® Growth Index 6.0%   16.5%
Russell 2000® Value Index (-4.2%)   2.2%
Russell 2000® Dynamic Index (-0.1%)   5.5%
Russell 2000® Defensive Index 1.8%   12.9%

Source: FTSE Russell Indexes. Total returns, US dollar denominated. Past performance is no guarantee of future results.

About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally and trading on over 25 exchanges worldwide.

FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Leading asset owners, asset managers, ETF providers and investment banks use FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives.

A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants. FTSE Russell is focused on applying the highest industry standards in index design and governance. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering.

FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com.

© 2015 London Stock Exchange Group companies.

London Stock Exchange Group companies includes FTSE International Limited ("FTSE"), Frank Russell Company ("Russell"), MTS Next Limited ("MTS"), and FTSE TMX Global Debt Capital Markets Inc ("FTSE TMX"). All rights reserved.

Views expressed by Tom Goodwin are as of August 11, 2015 and subject to change. In addition, views expressed by Russell Rhoads do not necessarily reflect the views of FTSE Russell or the London Stock Exchange Group.

"FTSE®", "Russell®", "MTS®", "FTSE TMX®" and "FTSE Russell" and other service marks and trademarks related to the FTSE or Russell indexes are trademarks of the London Stock Exchange Group companies and are used by FTSE, MTS, FTSE TMX and Russell under licence.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by the London Stock Exchange Group companies nor its licensors for any errors or for any loss from use of this publication.

Neither the London Stock Exchange Group companies nor any of their licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the Indexes for any particular purpose to which they might be put.

The London Stock Exchange Group companies do not provide investment advice and nothing in this communication should be taken as constituting financial or investment advice. The London Stock Exchange Group companies make no representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the London Stock Exchange Group companies. Distribution of the London Stock Exchange Group companies' index values and the use of their indexes to create financial products require a licence with FTSE, FTSE TMX, MTS and/or Russell and/or its licensors.

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.

CORP-10573