SEATTLE, WA — (Marketwired) — 07/24/13 — Global equity markets have made notable gains in July month-to-date as of July 23rd as reflected by performance of the Russell 1000® Index, Russell 2000® Index, Russell Developed ex-U.S. Index and Russell Emerging Markets Index. In addition, the Russell 1000, Russell Developed ex-U.S. and Russell Emerging Markets Indexes have reflected a shift to a dynamic posture in July relative to the first half of 2013, joining the dynamically-oriented Russell 2000 Index.
U.S. small caps stocks continued to lead global markets in July, with a 7.7% return for the Russell 2000 Index month-to-date through July 23rd, followed by a 6.9% return for the Russell Developed ex-U.S. Index for the same time period. The Russell 2000 Index returned 24.8% year-to-date as of July 23rd, followed by a 20.3% return for the Russell 1000 Index and a 10.7% return for the Russell Developed ex-US Index for this same time period. The Russell Emerging Markets Index, down (-4.7%) year-to-date as of July 23rd, has reflected positive returns in July.
Dynamic-oriented stocks have outperformed globally during the month of July as of July 23rd, particularly among U.S large-cap stocks as reflected by the Russell 1000 Dynamic Index and developed markets outside the U.S., as reflected by the Russell Developed ex-US Dynamic Index. This represents a recent shift for both indexes, in which defensive-oriented stocks outperformed in the first half of 2013. The Russell Emerging Markets Index also saw a similar dynamic shift in July. The Russell 2000 Index is the only index mentioned that has seen consistent leadership from dynamic-oriented stocks in all time periods.
“The deeper level of style analysis available through the provides insight into whether investors are favoring higher quality, more stable (i.e., Defensive) stocks, or are increasing their risk appetite and favoring more economically sensitive, less stable (i.e., Dynamic) stocks,” said David Koenig, CFA, FRM, investment strategist with Russell Indexes. “The push-and-pull scenario of defensive- and dynamic-oriented stocks within the Russell Indexes this year helps illustrate the need for investors to have index analysis tools to more accurately measure and track the changing dynamics of the market.”
Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell-s publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.
Opinions expressed by Mr.Koenig reflect market performance and observations as of July 23rd, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance.
This material is not an offer, solicitation or recommendation to purchase any security.
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