SOURCE: Russell Investments

Russell Investments

January 23, 2014 09:40 ET

U.S. Small & Large-Cap Equity Markets Continue to Exhibit Dynamic Growth Characteristics in 2014, According to the Russell Indexes

SEATTLE, WA--(Marketwired - Jan 23, 2014) -  Growth and dynamic-oriented U.S. stocks have continued to outperform their value and defensive counterparts in 2014 as of January 17, according to Russell Indexes, continuing the trend set last year.

In the U.S. small cap arena, the Russell 2000 Growth Index, which measures the performance characteristics of U.S. small cap stocks with historically higher valuations and higher growth rates, has continued to outperform the Russell 2000 Value Index, which measures the performance characteristics of U.S. small cap stocks with historically lower valuations and lower growth rates, year-to-date as of January 17. And the Russell 2000 Dynamic Index, which measures the performance characteristics of U.S. small cap stocks with historically greater economic sensitivity and more variable earnings profiles, has continued to outperform the Russell 2000 Defensive Index, which measures the performance characteristics of U.S. small cap stocks with less economic sensitivity and more stable earnings profiles, for the same time period.

In the U.S. large cap arena, the Russell 1000 Growth Index, which measures the performance characteristics of U.S. large cap stocks with historically higher valuations and higher growth rates, has continued to outperform the Russell 1000 Value Index, which measures the performance characteristics of U.S. large cap stocks with historically lower valuations and lower growth rates, year-to-date as of January 17. And the Russell 1000 Dynamic Index, which measures the performance characteristics of U.S. large cap stocks with historically greater economic sensitivity and more variable earnings profiles, has continued to outperform the Russell 1000 Defensive Index, which measures the performance characteristics of U.S. large cap stocks with less economic sensitivity and more stable earnings profiles, for the same time period.

"While growth and value measures have traditionally been used by investors to understand market dynamics, the introduction of defensive and dynamic style measures in recent years has given investors additional tools for even better portfolio analysis and construction," said Tom Goodwin, senior director of indexes research and innovation for Russell Investments. "The Russell Stability Indexes -- i.e. defensive & dynamic -- segment stocks even further by quality and volatility dimensions, making them an effective tool on their own and in combination with growth and value measures, to understand market trends and investor preferences.The fact that growth and dynamic stocks continue to outperform their defensive and value counterparts across small- and large-cap stocks for the last year suggests that investors continue to have growing confidence that the U.S. economy is moving from recovery to sustainable expansion."

For more information on small cap and microcap equities and the Russell Indexes, go to the Russell Investments website.

     
Index 2014 YTD a/o Jan 17 2013
Russell 2000 Index 0.4% 38.8%
Russell 2000 Dynamic Index 1.5% 40.2%
Russell 2000 Defensive Index -0.6% 37.5%
Russell 2000 Growth Index 1.6% 43.3%
Russell 2000 Value Index -0.8% 34.5%
Russell 1000 Index -0.3% 33.1%
Russell 1000 Dynamic Index 0.0% 35.3%
Russell 1000 Defensive Index -0.6% 30.9%
Russell 1000 Growth Index -0.2% 33.5%
Russell 1000 Value Index -0.4% 32.5%
     

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. Goodwin reflect market performance as of January 17, 2014 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.