SOURCE: Russell Investments

Russell Investments

June 02, 2014 09:27 ET

Value Shift: U.S. Large-Cap Equity Market Returned Nearly 22% Since Last Year's Russell Index Reconstitution Through May 28, as Reflected by the Russell 1000® Index; Value-Oriented Stocks Within the Index Have Led Growth in 2014 as of May 28

SEATTLE, WA--(Marketwired - Jun 2, 2014) - Since the conclusion of the June 2013 Russell Indexes Reconstitution, the U.S. large cap equity market has returned nearly 22% as reflected by the Russell 1000® Index. And, while the Russell 1000 Growth Index has led the Russell 1000 Value Index during this same time period, the Russell 1000 Value Index has gained the upper hand in 2014 as of May 28.

"Russell research has shown that value-oriented stocks on average have tended to outperform their growth-oriented counterparts over the long term. However, the value / growth style leadership dynamic has tended to move in cycles, including certain time periods where growth has actually outperformed value," said David Koenig, CFA, FRM, Index Investment Strategist with Russell Investments. "Russell's growth and value indexes help investors to more accurately measure and assess the growth and value style characteristics of individual companies and the broad markets over time."

In late June, Russell will undergo its annual indexes reconstitution. At reconstitution, the entire Russell family of global indexes will be rebalanced and style characteristics for the Russell growth and value indexes will be re-calibrated to reflect the current market environment.

For more information on the Russell growth and value indexes including a new research study on this topic by David Koenig, go to the Russell Indexes website.

Russell Index Returns Since 2013 Indexes Reconstitution

Index July 1, 2013 - May 28, 2014 2014 YTD as of May 28
Russell 1000® Index 21.7% 4.2%
Russell 1000® Value Index 20.0% 5.0%
Russell 1000® Growth Index 23.5% 3.4%

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. Koenig reflect market performance as of May 28, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance. 

Forecasting is inherently uncertain and may be incorrect. It is not representative of a projection of the stock market, or of any specific investment.

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.

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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.