Large Caps Flex Muscle With 3rd Quarter Gains in U.S. and Global Markets
October 1, 2007 — Large-cap stocks in the U.S. market outperformed small caps in September and for the third quarter, according to total returns for Russell Indexes. The large-cap Russell 1000® Index added 3.8% in September for a 2% third-quarter gain, and the benchmark now holds a relatively strong year-to-date advantage over the small-cap Russell 2000® Index, leading 9.3% to 3.2%.
Looking at the global market, a similar but less pronounced pattern appears. Large caps outperformed for September as the Russell Global Large Cap Index gained 5.4% and the Russell Global Small Cap Index increased 4%, assuring the large-cap benchmark maintained a slight year-to-date advantage.
"Large-cap stocks that benefit from higher oil prices and economic growth outside the United States are performing relatively well," said Dave Hintz, senior research analyst. "Third-quarter returns show energy, materials and technology sectors drove the index, while the financial and consumer discretionary sectors ended the period in the red."
The broad-market Russell 3000® Index gained 3.7% in September as each index within Russell's U.S. family turned in a positive performance for the month. The Russell Top 200® Growth Index gained 4.3% for the month and 5.2% for the quarter to lead all others for both periods. However, the small-cap and value benchmarks generally reflected a negative return for the third quarter.
"September returns were generally positive for all market segments with a tilt toward large caps and growth stocks, but a longer view shows an increasing gap for the third quarter and in 2007," said Hintz. "The Russell 3000® Growth Index (12.4%), for example, leads the Russell 3000® Value Index (5.2%) by a significant year-to-date margin."
Regarding U.S. style indexes, growth stocks outperformed their value counterparts at every market capitalization range for September and the third quarter.
In the Russell 3000, 60% of the stocks and nine of the 12 sectors showed a positive return for September.
In the Russell 1000, 22 stocks in the materials and processing sector gained more than 10% for the month of September, including Mosaic Company (27.4%), Monsanto (22.9%) and Freeport-McMoRan Copper & Gold (20%).
In the Russell 2000, three of the five top-performing stocks for September are in the financial services sector: Tarragon (178.7%), Alabama National Bancorp (48.5%) and eHealth (38.2%).
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 Through Sept. 28 |
|
|
|
|
| |
|
3Q07 |
|
YTD |
| Russell 3000® Index |
|
1.55% |
|
8.77% |
| Russell 1000® Index |
|
1.98% |
|
9.30% |
| Russell 2000® Index |
|
-3.09% |
|
3.16% |
| Russell 2500™ Index |
|
0.66% |
|
5.95% |
| Russell Midcap® Index |
|
-0.39% |
|
9.48% |
| Russell Top 200® Index |
|
3% |
|
9.28% |
| Russell Top 50® Index |
|
4.08% |
|
8.35% |
| Russell Microcap® Index |
|
-4.61% |
|
-0.53% |
| Russell 3000® Value Index |
|
-0.75% |
|
5.21% |
| Russell 3000® Growth Index |
|
3.85% |
|
12.39% |
| Russell 1000® Value Index |
|
-0.24% |
|
5.97% |
| Russell 1000® Growth Index |
|
4.21% |
|
12.68% |
| Russell 2000® Value Index |
|
-6.26% |
|
-2.70% |
| Russell 2000® Growth Index |
|
0.02% |
|
9.35% |
| Russell 2500™ Value Index |
|
-6.04% |
|
-0.33% |
| Russell 2500™ Growth Index |
|
0.66% |
|
12.03% |
| Russell Midcap® Value Index |
|
-3.55% |
|
4.83% |
| Russell Midcap® Growth Index |
|
2.15% |
|
13.35% |
| Russell Top 200® Value Index |
|
0.96% |
|
6.35% |
| Russell Top 200® Growth Index |
|
5.24% |
|
12.51% |
Russell Global Indexes
Total Returns Through Sept. 28 |
|
|
|
|
| |
|
September |
|
YTD |
| Russell Global Index |
|
5.2% |
|
14.1% |
| Russell Global Large Cap Index |
|
5.4% |
|
14.1% |
| Russell Global Small Cap Index |
|
4% |
|
13.8% |
| Russell Global ex-US Index |
|
6.4% |
|
18.3% |
| Russell Global ex-US Large Cap Index |
|
6.6% |
|
18.1% |
| Russell Global ex-US Small Cap Index |
|
5.2% |
|
19.8% |
| Russell Developed Index |
|
4.6% |
|
11.9% |
| Russell Emerging Markets Index |
|
10.4% |
|
35% |
Russell 1000 Index
Sector Returns Through Sept. 28 |
|
|
|
|
| |
|
3Q07 |
|
YTD |
| Technology |
|
7.2% |
|
17.6% |
| Health Care |
|
1.7% |
|
8% |
| Consumer Discretionary & Services |
|
-2.8% |
|
2.6% |
| Consumer Staples |
|
6.2% |
|
11.3% |
| Integrated Oils |
|
10.7% |
|
25.1% |
| Other Energy |
|
6.9% |
|
34.4% |
| Materials & Processing |
|
5.3% |
|
25.5% |
| Producer Durables |
|
5.3% |
|
16.9% |
| Autos & Transportation |
|
-3.3% |
|
7.6% |
| Financial Services |
|
-3.9% |
|
-4.1% |
| Utilities |
|
0.4% |
|
11% |
About Russell: Russell Investment Group aims to provide 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 The Northwestern Mutual Life Insurance Company and is 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 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#4760
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