As shown in the chart below, US large cap growth stocks have outperformed their value counterparts in the last year, with a slight pullback in July. This parallels how FAANG stocks have performed relative to the broad Russell 1000® large cap equity index for the same time period.
Alec Young – managing director, Global Markets Research, FTSE Russell
“While the Russell 1000 Growth Index’s 12.8% YTD total return still soundly leads the Russell 1000 Value’s 2.7% gain, growth’s leadership stalled recently as FAANG stocks leadership eased. The Russell 1000 Growth Index was up only 2.9% in July versus a larger 4% gain for the Russell 1000 Value Index. Sector weightings can help explain the ebbs and flows in style performance. Take the Technology and Consumer Discretionary sectors, 2018’s two best sector performers and home to all the FAANG stocks—the Russell 1000 Growth Index’s combined Technology and Consumer Discretionary sector weighting is 59%, which is much larger than the Russell 1000 Value Index’s comparable sector weighting of 18%. The biggest drivers of growth’s YTD leadership, as well as its July stumble, are its much larger exposures to the Technology and Consumer Discretionary sectors, both of which underperformed the Russell 1000 Index in July after leading in the first half of the year.”
For more information on US equity indexes from FTSE Russell, go to the FTSE Russell website.
 Source: FTSE Russell and Thomson Reuters. Data as of August 6, 2018. One cannot invest in an index. Past performance is no guarantee of future results. Please see the end for important legal disclosures. Views expressed by Alec Young of FTSE Russell are as of August 10 and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the LSE Group.
© 2018 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 Global Debt Capital Markets Inc. and FTSE Global Debt Capital Markets Limited (together, “FTSE GDCM”), (4) MTSNext Limited (“MTSNext”), (5) Mergent, Inc. (“Mergent”), (6) FTSE Fixed Income LLC (“FTSE FI”) and (7) The Yield Book Inc (“YB”). All rights reserved.
FTSE Russell® is a trading name of FTSE, Russell, FTSE GDCM, MTS Next Limited, Mergent, FTSE FI and YB. “FTSE®”, “Russell®”, “FTSE Russell®”, “MTS®”, “FTSE4Good®”, “ICB®”, “Mergent®”, “WorldBIG®”, “USBIG®”, “EuroBIG®”, “AusBIG®”, “The Yield Book®”, and all other trademarks and service marks used herein (whether registered or unregistered) are trademarks 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, FTSE GDCM, Mergent, FTSE FI or YB. FTSE International Limited is authorised and regulated by the Financial Conduct Authority as a benchmark administrator.
All information is provided for information purposes only. All information and data contained in this publication is obtained by the LSE Group, from sources believed by it to be accurate and reliable. Because of the possibility of human and mechanical error as well as other factors, however, such information and data is provided "as is" without warranty of any kind. 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 accuracy, timeliness, completeness, merchantability of any information or of results to be obtained from the use of the FTSE Russell Indexesor the fitness or suitability of the FTSE Russell Indexes for any particular purpose to which they might be put. Any representation of historical data accessible through FTSE Russell Indexes is provided for information purposes only and is not a reliable indicator of future performance.
No responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for (a) any loss or damage in whole or in part caused by, resulting from, or relating to any error (negligent or otherwise) or other circumstance involved in procuring, collecting, compiling, interpreting, analysing, editing, transcribing, transmitting, communicating or delivering any such information or data or from use of this document or links to this document or (b) any direct, indirect, special, consequential or incidental damages whatsoever, even if any member of the LSE Group is advised in advance of the possibility of such damages, resulting from the use of, or inability to use, such information.
No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing contained in this document or accessible through FTSE Russell Indexes, including statistical data and industry reports, should be taken as constituting financial or investment advice or a financial promotion.
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 data requires a licence from FTSE, Russell, FTSE GDCM, MTSNext, Mergent, FTSE FI, YB and/or their respective licensors.
Thomson Reuters content is the intellectual property of Thomson Reuters. Any copying, republication or redistribution of Thomson Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters. Thomson Reuters is not liable for any errors or delays in content, or for any actions taken in reliance on any content.