Both value and growth could see an upward trend in the second half of the year.
VettaFi’s Todd Rosenbluth believes value stocks that have underperformed the market could get a boost from one of Wall Street’s biggest events of the year: the annual rebalancing of the FTSE Russell.
“It’s worth paying attention to value,” the company’s head of research told CNBC’s “ETF Edge” this week. “It feels like … [for a] For a long time, growth exceeded value.
On Friday, the Russell indices underwent their annual reconstitution to reflect market changes as companies grow and change. The iShares Russell 1000 Growth ETF is up 20% so far this year, while the iShares Russell 1000 Value ETF is up almost 6%.
“We believe there is a place for both growth and value in a broader portfolio – just that people are more focused on growth in the second half of the year,” he added. “There were periods when the pendulum swung back in favor of value.”
Fiona Bassett, CEO of FTSE Russell, said on ETF Edge that the indices are constructed to reflect the nature of the market.
“One of the benefits of the Russell franchise in general is our ability to offer different presentation options,” she said. “For those seeking concentrated exposure to value or growth markets, we have the appropriate indices available.”
As of May 31, FactSet reports that these are the top three holdings of the Russell 1000 Growth ETF Microsoft, Apple And Nvidia. They are now the top holdings of the Russell 1000 Value ETF Berkshire Hathaway, JPMorgan Chase And Exxon Mobil.
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2024-06-29 15:00:01
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