The iShares Russell 2000 Growth ETF has kept pace with the S&P 500 since the 2009 lows, rallying +314% from the depths of the financial crisis a decade ago. The same cannot be said for the Russell 2000 Value ETF, which has managed a gain of 'just' 235% over the same period. While the Value and Growth ETF's briefly traded on a 1:1 basis in 2008, the Russell 2000 Value ETF has underperformed its Growth counterpart since and now trades a a 35% discount to higher growth companies. In a bear market, correlations tend to move to one and everything goes down together. While I am more interested in delivering absolute returns than relative returns at Secure Investments, it is worth noting that investors may find shelter in the Value stock universe on a relative basis during the next bear market.
Financial stocks tend to dominate Value benchmarks and IWN currently holds a 31% weighting to this sector. Industrial stocks are the second highest weighting in the Value ETF at 12%. In the Growth ETF, technology and healthcare combined represent over 50% on the Index.
At Secure Investments, I advise individual clients on their pension and non-pension fund investment portfolios. To learn more about my Active Asset Allocator and Gold Trader investment strategies, please get in touch at email@example.com or 086 821 5911. If you are reading this via LinkedIn, why not visit Secure Investments and subscribe to get exclusive content for free. No spam, ever. Just great stuff.
The information contained herein should not be taken as an offer of investment advice or encourage the purchase or sale of of any particular security or investment. It is provided for information purposes only. Secure Investments and its content providers makes no representation or warranty of any kind with respect to the services described, analysis or information obtained arising from use of the pages on this website. Information provided is obtained from sources deemed to be reliable and is provided solely on a best efforts basis. Secure Investments and its content providers do not guarantee the completeness or accuracy of such information and do not accept any liability for any loss or damage arising out of negligence or otherwise as a result of use or reliance on this information, whether authorised or not. The use of the website is at the user's sole risk. Not all recommendations are necessarily suitable for all investors and investment policy must be tailored to suit the circumstances of the individual. We recommend that readers consult their professional adviser before acting on any advice or recommendation on this website. The value of any investment may fall as well as rise and you may not recover the full amount originally invested. Past performance or simulated performance is no guarantee of future investment returns. The value of your investment may be subject to exchange rate fluctuations which may have a positive or adverse effect on the price or income or the securities.