SEATTLE, WA — (Marketwired) — 07/25/13 — An analysis of Russell Emerging Markets Index performance over the five years ended July 23rd shows defensive stocks significantly outperformed their dynamic counterparts in emerging markets. The Russell Emerging Markets Defensive Index outperformed the Russell Emerging Markets Index and its Dynamic counterpart for 2013 year-to-date, one year, three year and five years as of July 23rd.
“The offer multi-asset investors an alternative way to measure and tap into emerging markets by providing 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. “These index tools can be particularly useful when investing in emerging markets, which can be more volatile than other global markets. The outperformance of defensive-oriented stocks in these markets over the longer term as illustrated by the Russell Indexes suggests that a focus on higher quality holdings may be beneficial for long-term investors.”
Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional.
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. Index returns are presented in euro-denominated terms.
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.
The Russell Global Index includes more than 10,000 securities in 48 countries and covers 98% of the investable global market. All securities in the index are classified according to size, region, country and sector. Daily Returns for the main components are available here:
Investments in emerging or developing markets involve exposure to economic structures that are generally less diverse and mature, and to political systems which can be expected to have less stability than those of more developed countries. Securities may be less liquid and more volatile than US and longer-established non-US markets.
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