The surge in US small cap stocks in March led by value comes into even sharper focus when viewed through the lens of the Russell Style Indexes.
The US small-cap Russell 2000® Index, while still negative year-to-date, has risen 8% in the month of March, with value-oriented stocks leading the way as reflected by an 8.3% return for the Russell 2000® Value Index. And the recent value trend for US small cap stocks is further captured by the Russell 2000® Pure Value Index, which has risen nearly 10% in March.
Russell Index Performance
Source: FTSE Russell. Data as at March 31, 2016. Past performance is no guarantee of future results. Please see the end for important legal disclosures.
An extension of the Russell Growth and Value Indexes, the 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 index users seeking additional ways to manage their US equity style exposures. The index series, launched in May of 2015, is used by Invesco PowerShares as the basis for a suite of exchange traded funds.
Rolf Agather, Managing Director North America Research, FTSE Russell:
“By building on our widely followed Russell growth and value indexes and introducing an additional way to measure US small cap stocks, we believe we are providing very useful tools for market participants. And, in the case of US small cap stocks in today’s market environment, our pure style indexes provide a more concentrated reflection of the current trend toward value-oriented companies.”
John Feyerer, Director of Equity ETF Product Strategy, Invesco PowerShares:
“The Russell Pure Style Index methodology ensures allocations that are sharp, focused and stylistically pure for the market segments they track. This makes ETFs based on these indexes a very useful tool for strategic and tactical portfolio allocation.”
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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.
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Views expressed by Rolf Agather of FTSE Russell and John Feyerer of Invesco PowerShares Capital Management are as of March 31st and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the London Stock Exchange Group.
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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.