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Index IDEA: Russell 2000 changes course in March, with value leading growth

After a challenging start to 2016 for US small cap stocks as measured by the US small-cap Russell 2000 Index, the Index has risen nearly 7% in the month of March as of March 18. In fact, it has outperformed the Russell 1000 Index (+6.3%), the Russell Top 200® Index (+5.9%) and the Russell Top 50 Megacap Index (+5.3%) for this same period.

Examining US small caps more closely, the Russell 2000 Value Index has risen 7.7% in March to-date, relative to a 5.6% return for the Russell 2000 Growth Index. And, year-to-date, the Russell 2000 Value Index has risen 1.1%, relative to a 6.5% fall for the Russell 2000 Growth Index.

Tom Goodwin, Senior Index Research Director, FTSE Russell:
“Keeping a watchful eye on the key market indexes, particularly those measuring rapidly moving market areas such as US small caps, is a prudent habit for successful long-term market participants. Bellweather market measures like the Russell 2000 Index help market participants pick up on changing market directions but, most importantly, what factors might be influencing those market transitions.”

Russell Index Performance

Source: FTSE Russell. Data as at March 18, 2016. Past performance is no guarantee of future results. Please see the end for important legal disclosures.


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© 2016 London Stock Exchange Group plc and its applicable group undertakings (the “LSE Group”). The LSE Group includes (1) FTSE International Limited (“FTSE”), (2) Frank Russell Company (“Russell”), (3) FTSE TMX Global Debt Capital Markets Inc. and FTSE TMX Global Debt Capital Markets Limited (together, “FTSE TMX”) and (4) MTSNext Limited (“MTSNext”). All rights reserved.

FTSE Russell® is a trading name of FTSE, Russell, FTSE TMX and MTS Next Limited. “FTSE®”, “Russell®”, “FTSE Russell®” “MTS®”, “FTSE TMX®”, “FTSE4Good®” and “ICB®” and all other trademarks and service marks used herein (whether registered or unregistered) are trade marks and/or service marks owned or licensed by the applicable member of the LSE Group or their respective licensors and are owned, or used under licence, by FTSE, Russell, MTSNext, or FTSE TMX.

All information is provided for information purposes only. Every effort is made to ensure that all information given in this publication is accurate, but no responsibility or liability can be accepted by any member of the LSE Group nor their respective directors, officers, employees, partners or licensors for any errors or for any loss from use of this publication or any of the information or data contained herein.

Views expressed by Tom Goodwin of FTSE Russell are as of March 23 and subject to change. These views do not necessarily reflect the opinion of FTSE Russell or the London Stock Exchange Group.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any claim, prediction, warranty or representation whatsoever, expressly or impliedly, either as to the results to be obtained from the use of the Russell 2000® Dividend Growth Index or Russell 2000® Index or the fitness or suitability of the indexes for any particular purpose to which they might be put.

No member of the LSE Group nor their respective directors, officers, employees, partners or licensors provide investment advice and nothing in this IDEA should be taken as constituting financial or investment advice. No member of the LSE Group nor their respective directors, officers, employees, partners or licensors make any representation regarding the advisability of investing in any asset. A decision to invest in any such asset should not be made in reliance on any information herein. Indexes cannot be invested in directly. Inclusion of an asset in an index is not a recommendation to buy, sell or hold that asset. The general information contained in this publication should not be acted upon without obtaining specific legal, tax, and investment advice from a licensed professional.

No part of this information may be reproduced, stored in a retrieval system or transmitted in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, without prior written permission of the applicable member of the LSE Group. Use and distribution of the LSE Group index data and the use of their data to create financial products require a licence from FTSE, Russell, FTSE TMX, MTSNext and/or their respective licensors.

Past performance is no guarantee of future results. Charts and graphs are provided for illustrative purposes only. Index returns shown may not represent the results of the actual trading of investable assets. Certain returns shown may reflect back-tested performance. All performance presented prior to the index inception date is back-tested performance. Back-tested performance is not actual performance, but is hypothetical. The back-test calculations are based on the same methodology that was in effect when the index was officially launched. However, back- tested data may reflect the application of the index methodology with the benefit of hindsight, and the historic calculations of an index may change from month to month based on revisions to the underlying economic data used in the calculation of the index.

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