An 'added dimension' for inverstors seeking to manage equity exposures
SEATTLE, WA–(Marketwired – May 29, 2015) – U.S. growth stocks have outperformed U.S. value stocks year-to-date as of May 19 as reflected by the Russell Growth & Value Indexes, with mega cap stocks exhibiting the strongest performance relative to mid- and small-caps.
And, for U.S. mega-, mid- and small-caps, when examined with the new Russell Pure Style Indexes, the year-to-date growth to value gap is more pronounced. The recently introduced Russell Pure Style Index Series is designed as a more concentrated and targeted measure of stocks exhibiting strong growth or value characteristics, providing an added dimension to investors seeking additional ways of managing their U.S. equity style exposures.
The Russell Pure Style Index methodology includes only those stocks that are classified as pure growth or pure value and does not include stocks which exhibit both growth and value characteristics.
In addition, the stocks in the Russell Pure Style indexes are style score-weighted rather than market cap-weighted. The new indexes complement the original Russell Growth and Value Indexes.
Commentary: John G. Feyerer, CFA
VP, Director, Equity ETF Product Strategy, Invesco PowerShares Capital Management, LLC
- "In a landscape where the needs of institutional and retail investors continue to evolve, the Russell Pure Style indexes allow investors to more precisely measure style exposure within their portfolios. The Russell Pure Style indexes can serve as effective tools to help investors develop a style allocation that is sharp, focused, and stylistically pure."
FTSE Russell pioneered style indexation in 1987 when Russell launched the first U.S. growth and value indexes after recognizing that some money managers primarily purchased either "growth" or "value" stocks.
At the end of 2014, more than $2.2 trillion in assets were benchmarked to the Russell style indexes across various U.S. asset classes and these indexes formed the basis for nearly 1,800 retail and institutional investment products. Today, 99% of all U.S. institutional equity products that are benchmarked to a style index are benchmarked to Russell.
For more information on the Russell Pure Style Indexes including a new video go to the FTSE Russell website.
Russell Index 2015 Year-to-Date Returns as of May 19th
Russell Top 200® Pure Growth Index 8.9%
Russell Top 200® Growth Index 6.8%
Russell Top 200® Pure Value Index 1.1%
Russell Top 200® Value Index 1.7%
Russell Midcap® Pure Growth Index 7.8%
Russell Midcap® Growth Index 7.0%
Russell Midcap® Pure Value Index 0.3%
Russell Midcap® Value Index 3.7%
Russell 2000® Pure Growth Index 7.7%
Russell 2000® Growth Index 7.6%
Russell 2000® Pure Value Index -0.6%
Russell 2000® Value Index 1.8%
Source: FTSE Russell Indexes. Total returns, US dollar denominated. Past performance is not indicative of future results.
About FTSE Russell:
FTSE Russell is a global index leader that provides innovative benchmarking, analytics and data solutions for investors worldwide. FTSE Russell calculates thousands of indexes that measure and benchmark markets and asset classes in more than 80 countries, covering 98% of the investable market globally and trading on over 25 exchanges worldwide.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. Leading asset owners, asset managers, ETF providers and investment banks use FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products and index-based derivatives. A core set of universal principles guides FTSE Russell index design and management: a transparent rules-based methodology is informed by independent committees of leading market participants.
FTSE Russell is focused on applying the highest industry standards in index design and governance. FTSE Russell is also focused on index innovation and client collaboration as it seeks to enhance the breadth, depth and reach of its offering. FTSE Russell is wholly owned by London Stock Exchange Group. For more information, visit www.ftserussell.com 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.
© 2015 London Stock Exchange Group companies.