Small-cap Value Stocks Shine in June
 July 7, 2006 — The small-cap Russell 2000® Value Index reflected a 1.2% gain in June and outperformed all others in Russell's family of U.S. equity indexes for the month. The index, which has gained 10.4% for the first half of 2006, maintains its year-to-date advantage over all other indexes.
"The tilt toward value continued in June," said Steve Swartley, senior manager research analyst. "Value outperformed growth in a consistent pattern at every market capitalization tier."
Performance numbers for June also show the Russell 2000® Index increased its year-to-date lead over the large-cap Russell 1000® Index. The small-cap index, which increased 0.64% in June, reflects a year-to-date gain of 8.2% for the first six months of 2006, while the Russell 1000 lags with a 2.76% return.
For the second quarter of 2006, there's a slightly different story.
"After two tough months the small-cap segment regained some positive momentum in June," said Swartley. "For the second quarter as a whole though the Russell 2000 declined 5% and the smallest stocks as reflected by the Russell Microcap™ Index (-6.8%) suffered the largest loss."
Swartley added that despite a poor show in the second quarter, the Russell Microcap maintains a solid 6.4% year-to-date gain for 2006.
Among the 12 sectors in Russell indexes, technology continued to lose ground in June at every market capitalization tier and in both growth and value indexes. The sector reflected a 2% loss in the broad-market Russell 3000® Index. By contrast, seven of the 12 sectors showed a gain for the month, including autos and transportation (3.9%) and utilities (3.4%).
The top-performing stock in the large-cap Russell 1000 was Kerr-McGee (29.8%), which was followed by First Marblehead (25.8%) and Western Gas Resources (22.3%). On the other end of the performance spectrum, seven of the 20 worst performing stocks are in the technology sector, including Jabil Circuit (-26.5%).
In the Russell 3000, about 53% of the members gained value in June.
In the Russell 2000, 46 stocks gained more than 20% of their value in June and RSA Security led the index with a gain of 80.9%. On the other end of the spectrum, all of the 20 worst performing stocks are in three sectors: consumer discretionary (8), health care (7), and technology (5). The worst performing stock was Revlon (-57.7%).
View daily total returns for all Russell indexes.
| RUSSELL INDEXES TOTAL RETURNS (%) |
|
|
|
|
|
|
| |
|
June |
|
2Q06 |
|
YTD |
| Russell 3000® Index |
|
0.18% |
|
-1.98% |
|
3.23% |
| Russell 1000® Index |
|
0.13% |
|
-1.66% |
|
2.76% |
| Russell 2000® Index |
|
0.64% |
|
-5.02% |
|
8.21% |
| Russell 2500™ Index |
|
0.05% |
|
-4.34% |
|
6.32% |
| Russell Midcap® Index |
|
0.12% |
|
-2.58% |
|
4.84% |
| Russell Top 200® Index |
|
0.14% |
|
-1.27% |
|
1.90% |
| Russell Top 50® Index |
|
0.16% |
|
-1.15% |
|
1.33% |
| Russell Microcap™ Index |
|
-0.43% |
|
-6.77% |
|
6.41% |
| Russell 3000® Value Index |
|
0.69% |
|
0.28% |
|
6.90% |
| Russell 3000® Growth Index |
|
-0.35% |
|
-4.22% |
|
-0.32% |
| Russell 1000® Value Index |
|
0.64% |
|
0.59% |
|
6.56% |
| Russell 1000® Growth Index |
|
-0.39% |
|
-3.90% |
|
-0.93% |
| Russell 2000® Value Index |
|
1.23% |
|
-2.70% |
|
10.44% |
| Russell 2000® Growth Index |
|
0.06% |
|
-7.25% |
|
6.07% |
| Russell 2500™ Value Index |
|
0.57% |
|
-2.53% |
|
7.67% |
| Russell 2500™ Growth Index |
|
-0.47% |
|
-6.12% |
|
4.98% |
| Russell Midcap® Value Index |
|
0.60% |
|
-0.56% |
|
7.02% |
| Russell Midcap® Growth Index |
|
-0.41% |
|
-4.69% |
|
2.56% |
| Russell Top 200® Value Index |
|
0.66% |
|
1.10% |
|
6.36% |
| Russell Top 200® Growth Index |
|
-0.39% |
|
-3.58% |
|
-2.28% |
June 2006
SECTOR PERFORMANCE |
|
|
|
|
| |
|
Russell 1000 |
|
Russell 2000 |
| Technology |
|
-2.10% |
|
-1.30% |
| Health Care |
|
0.10% |
|
0.20% |
| Consumer Discretionary & Services |
|
-0.30% |
|
-1.80% |
| Consumer Staples |
|
1.70% |
|
0.50% |
| Integrated Oils |
|
2.40% |
|
4.00% |
| Other Energy |
|
1.80% |
|
3.50% |
| Materials & Processing |
|
-0.10% |
|
0.40% |
| Producer Durables |
|
-1.10% |
|
0.80% |
| Autos & Transportation |
|
3.70% |
|
5.20% |
| Financial Services |
|
-0.30% |
|
2.60% |
| Utilities |
|
3.50% |
|
0.50% |
About Russell: Russell Investment Group, a global leader in multi-manager investing, provides investment products and services in 44 countries. Russell manages more than $167 billion in assets and advises clients worldwide representing more than $2.4 trillion. Founded in 1936, Russell is a subsidiary of Northwestern Mutual and is headquartered in Tacoma, Wash., with additional offices in New York, Toronto, London, Paris, Sydney, Singapore, Auckland and Tokyo.
Russell employs its indexes to objectively evaluate investment managers for multi-manager funds and other investment services. More than $3.8 trillion in assets are benchmarked to Russell indexes.
Russell Investment Group is a registered trade name of Frank Russell Company, a Washington, USA corporation, which operates through subsidiaries worldwide. Frank Russell Company is a subsidiary of The Northwestern Mutual Life Insurance Company.
Frank Russell Company is the owner of the trademarks, service marks and copyrights related to its indexes.
Russell's indexes are unmanaged and cannot be invested in directly.
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