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.
For more information on the Russell US Indexes reconstitution, go to the FTSE Russell website.
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.
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