SOURCE: Russell Investments

Russell Investments

November 20, 2013 09:52 ET

U.S. Equity Markets See Continued Growth Across Large- and Small-Cap Stocks YTD, Helped by Strength in Healthcare, Consumer Sectors and Dynamic Stocks; Traditional Defensive Sectors Have Lagged, According to Russell Indexes

SEATTLE, WA--(Marketwired - Nov 20, 2013) - The U.S. small-cap Russell 2000® Index returned nearly 33% year-to-date as of Friday, November 15, followed closely by a 29% return for the U.S. large-cap Russell 1000® Index for the same time period.

Year-to-date returns as of November 15 in these Indexes reflect a dynamic, consumer-driven U.S. equity market:

  • The Consumer Staples and Healthcare sectors have led the Russell 2000 Index, while the Healthcare and Consumer Discretionary sectors have led the Russell 1000 Index year-to-date.

  • The Utilities and Materials & Processing sectors are the bottom two sector performers year-to-date in the Russell 2000 and Russell 1000 Index.

  • Dynamic-oriented stocks have outperformed defensive-oriented stocks in both Indexes year-to-date as reflected by the Russell defensive and dynamic indexes within each asset class.

"Continuing low interest rates appear to have served as a backdrop for low inflation, decent corporate earnings and a steady if unremarkable U.S. economic recovery. This environment has been friendly for U.S. equity prices as reflected by the Russell Indexes," said Stephen Wood, chief market strategist for Russell Investments. "On a sector level, strong growth in consumer-oriented sectors may reflect the gradual rebound in household wealth and consumer sentiment. Traditionally defensive sectors such as utilities have begun to lag in a more dynamic, growth-oriented equity market environment."

Russell Index / Index Sector   4Q 2013 a/o 11/15   2013 YTD a/o 11/15
Russell 2000 Index   4.1%   32.9%
Russell 2000 Defensive Index   5.1%   32.3%
Russell 2000 Dynamic Index   3.0%   33.5%
Russell 2000 Index - Technology Sector   1.8%   34.1%
Russell 2000 Index - Healthcare Sector   2.3%   42.6%
Russell 2000 Index - Consumer Discretionary Sector   4.8%   39.3%
Russell 2000 Index - Consumer Staples Sector   2.3%   42.8%
Russell 2000 Index - Energy Sector   8.3%   37.5%
Russell 2000 Index - Materials & Processing Sector   4.9%   20.2%
Russell 2000 Index - Producer Durables Sector   4.7%   36.6%
Russell 2000 Index - Financial Services Sector   5.0%   26.2%
Russell 2000 Index - Utilities Sector   2.4%   17.5%
Russell 1000 Index   6.9%   29.1%
Russell 1000 Defensive Index   7.4%   27.7%
Russell 1000 Dynamic Index   6.5%   30.5%
Russell 1000 Index - Technology Sector   6.8%   21.2%
Russell 1000 Index - Healthcare Sector   7.3%   38.8%
Russell 1000 Index - Consumer Discretionary Sector   6.5%   37.0%
Russell 1000 Index - Consumer Staples Sector   9.1%   27.8%
Russell 1000 Index - Energy Sector   6.4%   23.5%
Russell 1000 Index - Materials & Processing Sector   6.3%   20.5%
Russell 1000 Index - Producer Durables Sector   8.0%   35.6%
Russell 1000 Index - Financial Services Sector   6.1%   29.8%
Russell 1000 Index - Utilities Sector   6.0%   16.6%

Source: Russell Investments. Returns are total returns (reflect reinvestment of dividends and distributions) and are denominated in US dollars.

The Russell Global Index measures the performance of the global equity market based on all investable equity securities, and is constructed to provide a comprehensive and unbiased barometer for the global segment. The index includes more than 10,000 securities in 47 countries, and covers 98% of the investable global market. All securities in the Russell Global Index are classified according to size, region, country and sector; as a result the index can be segmented into more than 300 distinct benchmarks.

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. Wood reflect market performance as of November 15, 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.