After completing the annual reconstitution of the Russell US Indexes last Friday with $47.1 billion and $28.9 billion in US stocks traded in the closing moments of Friday trading on the New York Stock Exchange (NYSE) and Nasdaq exchanges, respectively, the newly reconstituted Russell US Indexes began calculating on Monday.
And while this week begins a new chapter for the US equity markets as reflected by the Russell US Indexes, it is a good time to reflect on the last year for the US equity markets. From the completion of the 2016 Russell US Indexes reconstitution on June 24, 2016 through close of trading on Friday, we’ve observed some notable trends in the US markets.
- US Equity Indexes Ride the “Trump Bump”: The US large-cap Russell 1000® Index was up more than 22% from the completion of last year’s Russell US Indexes reconstitution on June 24, 2016 through last Friday’s market close, while the US small-cap Russell 2000® Index was up more than 27% for the same time period. Interestingly, 16% and more than 19% of the increase in these index values have come after the US presidential election on November 8, 2016
- Growth Trumping Value in 2017: In 2017, the Russell Growth and Value Indexes detected a clear shift from value-led US equity markets to growth-led, with the Russell 1000® and Russell 2000® Growth Indexes returning 15.7% and 10.8%, respectively, relative to a 4.2% return and a (0.4%) negative return for their value counterparts year-to-date through June 23. This follows 2016 in which value clearly outperformed growth across major US market cap tiers.
- Microcaps Rule: In the period from last year’s Russell US Indexes reconstitution through June 23, the smallest small-caps, as reflected by the Russell Microcap® Index, rose 28.7%. This rise compared to a 27.3% rise for the US small-cap Russell 2000® Index and a 22.3% rise for the US large-cap Russell 1000® Index.
Source: FTSE Russell. Data as of June 23, 2017 and derived from the Russell Index performance calculator. Past performance is no guarantee of future results. Please see the end for important legal disclosures. Friday, June 23 US equity market closing volume figures courtesy of New York Stock Exchange (NYSE) and Nasdaq.
For more information on the Russell US Indexes reconstitution, go to the FTSE Russell website.
© 2017 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.
All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the FTSE Russell Indexes or the fitness or suitability of the indexes for any particular purpose to which they might be put.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.
No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.
Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index.