The Russell US Indexes were created in 1984 by the Frank Russell Company (now part of FTSE Russell) with the goal of providing accurate representation of the investable US equity market. When initially introduced, the Russell indexes provided five years of simulated back-history so that a historical record would exist, enabling investors to use the indexes at launch without requiring a live track record to be accumulated. As a result, there are now 40 years of performance, characteristics and sector data available for the major indexes within the Russell US Index family as of year-end 2018. The depth and detail of this available information allows us to take a deeper historical view of the US equity market to help investors understand its dynamics and how US equity fits into their overall asset allocation.

In this report, we take advantage of four decades of information to observe how the US equity markets have reflected the overall growth in the US economy as well as the shift from a largely industrial economy to one that is more technology and service focused.