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Index IDEA: Value factor has exceeded other US small cap equity market drivers since the US presidential election

The Russell 2000® Index, which measures US small cap stocks, rose nearly 11% from the US presidential election through the end of November.

And when FTSE Russell looked more closely at factors contributing to the US small cap stock performance spike since the US presidential election, value-oriented US small cap stocks have shown the highest increase, as shown by the Russell 2000 Value Factor Index which recorded a return of nearly 13% from November 8 through the end of November, followed by quality-oriented US small cap stocks (+11.2% return for the Russell 2000 Quality Factor Index) and momentum-oriented US small cap stocks (+9.9% return for the Russell 2000 Momentum Factor Index).


Ling Tang, CFA - Senior ETP Analyst, Research & Analytics, FTSE Russell:

“The FTSE Russell Global Factor Index Series can be used by market participants to analyze and help understand the factor drivers at work in the market at any point in time. In the case of US small caps, which have shown a significant increase in performance since the US election, this provides an additional level of insight on what factors may be driving this rise in asset class performance.“


The FTSE Global Factor Index series is a suite of benchmarks designed to represent the performance of specific factor characteristics, with seven single factor indexes and additional combinations of factors comprising the index series. The seven factors represent common factor characteristics for which there is broad academic and practitioner consensus, supported by a body of empirical evidence across different geographies and time periods. Visit the FTSE Global Factor Index Series page for a deeper dive.


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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.

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.

Views expressed by Ling Tang of FTSE Russell are as of November 30th and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.

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 Global Factor Index Series 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.

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