Trending toward higher-quality, lower-volatility
SEATTLE, WA–(Marketwired – Dec 5, 2014) – In 2014 year-to-date as of December 1, the Russell 1000® Defensive Index® shows investors gravitating toward higher quality, lower volatility, more stable U.S. large cap stocks.
The Russell 1000® Defensive Index® has returned 13.6% and 5.2% for the year-to-date and the fourth quarter-to-date, respectively, as of December 1, outperforming the Russell 1000® Index, which returned 12.6% and 4.3% for the same time periods.
The Russell 1000® Defensive Index selects U.S. large cap companies based on their relative stability, as measured by volatility of price and earnings, leverage and return on assets. The Index is designed to identify more stable U.S. stocks relative to its counterpart the Russell 1000® Dynamic Index.
Tom Goodwin – Senior Index Research Director, Russell Investments
“With U.S. equities exhibiting moderate and relatively volatile performance in 2014 relative to 2013, it appears that in addition to gravitating toward larger cap stocks, U.S. investors are seeking lower volatility, higher quality stocks as evidenced by Russell Defensive Index performance. These new indexes go beyond broad market performance to provide investors with a deeper level of insight into underlying dynamics impacting markets and investors.”
To access the new Smart Beta Guidebook, an overview to Russell smart beta indexes authored by Tom Goodwin, go to the Russell Indexes website.
Russell Index YTD 2014 a/o 12/1 4th QTR a/o 12/1
Russell 1000® Index 12.6% 4.3%
Russell 1000® Defensive Index® 13.6% 5.2%
Source: Russell Investments. Total returns, US dollar denominated.
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.
The Russell 1000 Index measures the performance of the large-cap segment of the U.S. equity universe. It is a subset of the Russell 3000® Index and includes approximately 1000 of the largest securities based on a combination of their market cap and current index membership. The Russell 1000 represents approximately 92% of the U.S. market.
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.
Russell Investments is the owner of the trademarks, service marks and copyrights related to its respective indexes.
Opinions expressed by Mr. Goodwin reflect market performance as of December 1, 2014 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.
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.