Saturday, January 19, 2008

Style Performance for 2008

We saw two style-related themes in 2007: large caps outperforming small caps and growth outperforming value.

Above, we see the ETFs for Russell 1000 Growth (IWF), Russell 1000 Value (IWD), Russell 2000 Growth (IWO), and Russell 2000 Value (IWN). Note that the Russell 1000 universe covers the 1000 largest equity issues; the 2000 universe is largely comprised of mid cap and small cap stocks.

So far in 2008, we see weakness across all styles, but large caps still are outperforming small caps. Growth, however, is not outperforming value. This suggests that recessionary concerns are affecting investors, as they shift away from growth and prefer larger, safer issues.


Investment Style and 2007 Returns