Russell Emerging Asia Index Reflects 5.7% Gain for June
U.S. growth stocks outpace value stocks for the month
 June 30, 2007 — The Russell Global Index reflected a slight dip of -0.3% for June, despite positive numbers for emerging markets around the world. The Russell Emerging Asia Index (5.7%), Russell Latin America Index (3.7%) and Russell Emerging EMEA Index (3.2%) all gained ground for the month and, year-to-date for 2007, the Russell Latin America Index is up 30.8%. By contrast, the Russell Developed Index reflected a loss of -0.8% for June.
Looking at the U.S. component of the Russell Global Index, the broad-market Russell 3000® Index reflected a decline of -1.87% for June as every market segment measured by Russell's family of U.S. indexes showed similarly negative returns.
"We continue to see a low level of disparity between returns for the various market segments in 2007," said Steve Wood, senior portfolio strategist. "They also are moving as a group lately, upward in May and downward in June."
While every U.S. index reflected a negative return for June, each shows a positive year-to-date gain ranging from 3.2% for the Russell Microcap® Index to 11.5% for the Russell Small Cap Completeness® Growth Index. In the middle of that range, the large-cap Russell 1000® Index (7.2%) and small-cap Russell 2000® Index (6.45%) show less disparity for 2007, particularly since reaching all-time high valuations in the second quarter.
Wood notes, though, that a market rotation may be underway. "Looking at the year-to-date numbers we're beginning to see a rotation toward the mid-cap segment of the market," he said.
The Russell Midcap® Index, despite reflecting a loss of 2.25% for June, gained 5.3% for the second quarter and 9.9% for the first six months of 2007. A closer look shows mid-cap growth stocks, as measured by the Russell Midcap® Growth Index, have surged 11% year-to-date.
Regarding U.S. style indexes, growth stocks outperformed their value counterparts at every market capitalization range for June. Year-to-date figures show the Russell 3000® Growth Index (8.2%) has expanded its noteworthy year-to-date lead over the Russell 3000® Value Index (6%).
"The technology sector continues to thrive in the current market conditions, gaining ground in both the large-cap and small-cap segments for June," said Wood. "While interest sensitive sectors showed real weakness in June, mostly due to rising interest rates, sector performance for 2007 has been dominated by commodity-related stocks as well as other cyclical and economically sensitive issues."
In the Russell 3000, 62% of the stocks turned in a negative return for June. While nine of the 12 sectors reflected a negative number, technology was a relative bright spot with a gain of 0.7% for the month.
In the Russell 1000, five of the 20 top-performing stocks are in the technology sector, including First Solar (31.2%) which led the index. It was followed by General Motors (26%), Hertz Global Holdings (2.4%), Huntsman Corp. (22.2%) and Expedia (21.4%).
In the Russell 2000, seven of the 20 top-performing stocks are in the health care sector with Ventana Medical Systems (50.2%) and Digene (34.9%) leading the group.
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 |
|
|
|
|
| |
|
June |
|
2Q07 |
| Russell 3000® Index |
|
-1.87% |
|
5.77% |
| Russell 1000® Index |
|
-1.91% |
|
5.90% |
| Russell 2000® Index |
|
-1.46% |
|
4.42% |
| Russell 2500™ Index |
|
-1.79% |
|
4.94% |
| Russell Midcap® Index |
|
-2.25% |
|
5.30% |
| Russell Top 200® Index |
|
-1.76% |
|
6.15% |
| Russell Top 50® Index |
|
-1.79% |
|
6.15% |
| Russell Microcap® Index |
|
-0.91% |
|
3.32% |
| Russell 3000® Value Index |
|
-2.34% |
|
4.69% |
| Russell 3000® Growth Index |
|
-1.42% |
|
6.84% |
| Russell 1000® Value Index |
|
-2.34% |
|
4.93% |
| Russell 1000® Growth Index |
|
-1.49% |
|
6.86% |
| Russell 2000® Value Index |
|
-2.33% |
|
2.30% |
| Russell 2000® Growth Index |
|
-0.57% |
|
6.69% |
| Russell 2500™ Value Index |
|
-2.66% |
|
2.91% |
| Russell 2500™ Growth Index |
|
-0.95% |
|
6.99% |
| Russell Midcap® Value Index |
|
-2.85% |
|
3.65% |
| Russell Midcap® Growth Index |
|
-1.73% |
|
6.74% |
| Russell Top 200® Value Index |
|
-2.14% |
|
5.41% |
| Russell Top 200® Growth Index |
|
-1.36% |
|
6.93% |
| Russell Microcap® Value Index |
|
-1.39% |
|
2.02% |
| Russell Microcap® Growth Index |
|
-0.41% |
|
4.70% |
| RUSSELL GLOBAL INDEXES TOTAL RETURNS |
|
|
|
|
| |
|
June |
|
YTD |
| Russell Global Index |
|
-0.3% |
|
10.6% |
| Russell Global Large Cap Index |
|
-0.4% |
|
10.3% |
| Russell Global Small Cap Index |
|
0.4% |
|
13.5% |
| Russell Global ex-US Index |
|
0.9% |
|
13.4% |
| Russell Global ex-US Large Cap Index |
|
0.9% |
|
12.9% |
| Russell Global ex-US Small Cap Index |
|
1.4% |
|
17.4% |
| Russell Developed Index |
|
-0.8% |
|
9.8% |
| Russell Emerging Markets Index |
|
4.7% |
|
18.7% |
Russell 3000 Index
SECTOR PERFORMANCE |
|
|
|
|
| |
|
June |
|
2Q07 |
| Technology |
|
0.69% |
|
10.53% |
| Health Care |
|
-3.36% |
|
4.52% |
| Consumer Discretionary & Services |
|
-1.64% |
|
3.39% |
| Consumer Staples |
|
-1.87% |
|
2.87% |
| Integrated Oils |
|
1.46% |
|
13.39% |
| Other Energy |
|
-0.50% |
|
14.43% |
| Materials & Processing |
|
-0.26% |
|
9.05% |
| Producer Durables |
|
-1.08% |
|
8.59% |
| Autos & Transportation |
|
-1.04% |
|
7.57% |
| Financial Services |
|
-4.09% |
|
1.77% |
| Utilities |
|
-3.39% |
|
3.37% |
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 more than $200 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.
RC#4704
|
