Value. Is the Trend Turning?
- For the 1 month ending June 8, battered Value stocks had outperformed Growth stocks and the S&P 500. Value, as a strategy, has underperformed Growth and the S&P 500 over the past 5 and 10 years. Might the recent outperformance signal the start of a new trend?
- The chart below shows monthly 6-month rolling returns for S&P 500, Value, Growth and U.S. bonds. Rolling averages are useful in smoothing returns that may otherwise be skewed by near term performance.
Performance – Monthly Rolling 6M Returns
Source: Bloomberg Finance L.P. Data as of 05/31/2020
Past performance does not guarantee future results. The referenced indices are shown for informational purposes only and are not meant to represent the Fund. Investors cannot directly invest in an index. Short-term performance may often reflect conditions that are likely not sustainable, and thus such performance may not be repeated in the future.
Definitions:
S&P 500 Index: The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
S&P 500 Value Index: The S&P 500 Value Index is a market capitalization weighted index. All the stocks in the underlying parent index are allocated into value or growth. Stocks That do not have pure value or pure growth characteristics have their market caps distributed between the value & growth indices. Prior to 12/19/2005 this index represented the S&P 500/Barra Value Index.
S&P 500 Growth Index: The S&P 500 Growth Index is a market capitalization weighted index. All the stocks in the underlying parent index are allocated into value or growth. Stocks that do not have pure value or pure Growth characteristics have their market caps distributed between the value & growth indices.
U.S. Aggregate: The Bloomberg Barclays US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency).