U.S. Growth Stocks Shine Despite Negative Numbers In July
Russell Emerging Markets Index gains 6% for the month
 August 1, 2007 — The largest growth stocks outperformed all other segments of the U.S. equity market for the month of July, according to month-end total returns for Russell's family of U.S. indexes. The mega-cap Russell Top 200® Growth Index (-1.2%) led all others, while the large-cap Russell 1000® Growth Index (-1.6%) wasn't far behind. By contrast, the value counterparts to these two indexes each dipped more than 4% for the month.
"Large-cap growth had been actively punished for much of this decade to the point there was some valuation attractiveness in this segment," said Steve Wood, senior portfolio strategist. "In the small-cap segment, the performance gap between value and growth has become a story in itself."
The Russell 2000® Growth Index reflects a year-to-date gain of 3.7% for 2007, while the Russell 2000® Value Index shows a loss for the month (-7.4%) and for 2007 (-5%).
Looking at the global market, the Russell Emerging Markets Index reflected a gain of 6% for the month of July, and this index now shows a year-to-date surge of 25.8%. The Russell Developed Index dipped 2.3% for the month to maintain a relatively weak 7.3% year-to-date gain.
Small-cap stocks outside the U.S. market provided global investors with another bright spot for the month as the Russell Global ex-US Small Cap Index added 2.1% for the month to reflect a year-to-date gain of 19.9%.
The U.S. component of the Russell Global Index, the broad-market Russell 3000® Index, reflected a loss of -3.4% for July. Despite negative numbers across the board for the U.S. market in July, most segments continue to reflect a positive year-to-date return for 2007. Only small-cap value stocks and microcaps now show negative year-to-date numbers. The Russell Microcap® Value Index reflected a decline of -8.2% for July, which pulled it's year-to-date number (-5.2%) into the red. In the microcap segment, unlike other capitalization tiers, both the value and growth indexes reflect negative numbers for the month of July and 2007.
"Beyond valuation, the current market environment would tend to favor larger, consistent growth names," said Wood. "An example of this is this month's gain for the large-cap technology sector, boosting it to a solid 9.9% year-to-date increase for 2007. By contrast, financial services suffered a set-back of -7.5% for the month."
Regarding U.S. style indexes, growth stocks outperformed their value counterparts at every market capitalization range for July. Year-to-date figures show the Russell 3000® Growth Index (6.2%) has expanded its noteworthy year-to-date lead over the Russell 3000® Value Index (0.8%).
In the Russell 3000, 80% of the stocks—and 10 of the 12 sectors—turned in a negative return for July.
In the Russell 1000® Index, the two top-performing stocks are in the health care sector: Intuitive Surgical (53.2%) and Dade Behring Holdings (40.9%). They were followed by two in the consumer discretionary sector: Crocs (37.9%) and Hilton Hotels (32.1%).
In the Russell 2000® Index, the top-performing stock for July was Oilsands Quest (78.1%). Two financial services stocks also ranked in the top 10: Sterling Financial (59%) and First Indiana (41.7%).
For additional performance figures on Russell's indexes and the user-friendly Russell index returns calculator, please visit: www.russell.com/Indexes.
| RUSSELL U.S. INDEXES TOTAL RETURNS |
|
|
|
|
| |
|
July |
|
YTD |
| Russell 3000® Index |
|
-3.41 |
|
3.46% |
| Russell 1000® Index |
|
-3.09% |
|
3.87% |
| Russell 2000® Index |
|
-6.84% |
|
-0.83% |
| Russell 2500™ Index |
|
-5.75% |
|
2.43% |
| Russell Midcap® Index |
|
-3.72% |
|
5.81% |
| Russell Top 200® Index |
|
-2.82% |
|
3.11% |
| Russell Top 50® Index |
|
-2.03% |
|
1.99% |
| Russell Microcap® Index |
|
-7.01% |
|
-3.04% |
| Russell 3000® Value Index |
|
-4.95% |
|
0.76% |
| Russell 3000® Growth Index |
|
-1.87% |
|
6.2% |
| Russell 1000® Value Index |
|
-4.62% |
|
1.32% |
| Russell 1000® Growth Index |
|
-1.55% |
|
6.45% |
| Russell 2000® Value Index |
|
-8.51% |
|
-5.04% |
| Russell 2000® Growth Index |
|
-5.19% |
|
3.65% |
| Russell 2500™ Value Index |
|
-7.49% |
|
-1.86% |
| Russell 2500™ Growth Index |
|
-4.19% |
|
6.64% |
| Russell Midcap® Value Index |
|
-5.58% |
|
2.63% |
| Russell Midcap® Growth Index |
|
-2.24% |
|
8.48% |
| Russell Top 200® Value Index |
|
-4.28% |
|
0.83% |
| Russell Top 200® Growth Index |
|
-1.21% |
|
5.62% |
| Russell Microcap® Value Index |
|
-8.15% |
|
-5.18% |
| Russell Microcap® Growth Index |
|
-5.86% |
|
-0.79% |
| RUSSELL GLOBAL INDEXES TOTAL RETURNS |
|
|
|
|
| |
|
July |
|
YTD |
| Russell Global Index |
|
-1.5% |
|
9% |
| Russell Global Large Cap Index |
|
-1.5% |
|
8.6% |
| Russell Global Small Cap Index |
|
-0.9% |
|
12.5% |
| Russell Global ex-US Index |
|
0% |
|
13.5% |
| Russell Global ex-US Large Cap Index |
|
-0.3% |
|
12.6% |
| Russell Global ex-US Small Cap Index |
|
2.1% |
|
19.9% |
| Russell Developed Index |
|
-2.3% |
|
7.3% |
| Russell Emerging Markets Index |
|
6% |
|
25.8% |
Russell 1000 Index
SECTOR PERFORMANCE |
|
|
|
|
| |
|
July |
|
YTD |
| Technology |
|
0.17% |
|
9.9% |
| Health Care |
|
-3.9% |
|
2% |
| Consumer Discretionary & Services |
|
-4.7% |
|
0.5% |
| Consumer Staples |
|
-2.2% |
|
2.5% |
| Integrated Oils |
|
1.2% |
|
14.4% |
| Other Energy |
|
-0.9% |
|
24.6% |
| Materials & Processing |
|
-1.2% |
|
17.7% |
| Producer Durables |
|
0.7% |
|
11.8% |
| Autos & Transportation |
|
-2% |
|
9% |
| Financial Services |
|
-7.5% |
|
-7.7% |
| Utilities |
|
-3.2% |
|
7.1% |
About Russell: Russell Investment Group aims to improve financial security for people by providing strategic advice, world-class implementation, state-of-the-art performance benchmarks and a range of institutional-quality investment products. With $219.9 billion in assets under management, Russell serves individual, institutional and advisor clients in more than 40 countries. Russell provides access to some of the world's best money managers. It helps investors put this access to work in corporate defined benefit and defined contribution plans, and in the life savings of individual investors.
Founded in 1936, Russell is a subsidiary of Northwestern Mutual Life Insurance Company and headquartered in Tacoma, Wash. Russell has principal offices in Amsterdam, Auckland, Hong Kong, Johannesburg, London, Melbourne, New York, Paris, San Francisco, Singapore, Sydney, Tokyo and Toronto.
Russell's comprehensive family of global equity indexes, including the industry-leading Russell U.S. indexes, allow investors to seamlessly track performance of distinct market segments worldwide without gaps or overlaps. Russell's index story began in 1984 when the multi-manager investment firm launched its family of U.S. indexes to accurately measure U.S. market segments and better track investment manager behavior. The resulting index methodology produced the broad-market Russell 3000 and popular subcomponents such as the small-cap Russell 2000. Together, Russell's U.S. indexes have become the most widely used benchmarks by institutional investors and today about $4 trillion in assets are benchmarked to them. In early 2007, Russell applied the same pioneering index methodology to the world's equity markets to create the Russell Global Index and hundreds of subcomponent global indexes. Similar to how the Russell 3000 captures 98% of the investable U.S. equity market, the Russell Global Index captures 98% of the investable global equity market. The Russell Global Index, which reflects the performance of about 10,000 stocks in 63 countries, uses the Russell 3000 as its U.S. subcomponent and 300 other distinct subcomponents that are segmented according to size, region, country and sector.
Contacts:
Steve Claiborne, 253-439-1858
Russell Investment Group, a Washington, USA corporation, operates through subsidiaries worldwide. Russell Investment Group is a subsidiary of The Northwestern Mutual Life Insurance Company.
Russell Investment Group 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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