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:
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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.

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