An upside move is likely in both value and growth in the second half of this year.
VettaFi’s Todd Rosenbluth says value stocks, traditionally market laggards, could get a boost from one of Wall Street’s biggest events of the year: the FTSE Russell’s annual rebalancing.
“Pay attention to value,” said the company’s head of research. CNBC’s “ETF Edge.” this week. “It feels like … [for a] It’s been a while since growth has outpaced value.”
On Friday, the Russell indexes recovered to year-over-year reflect changes in the market as companies grow and change. iShares Russell 1000 Growth ETF has increased 20% this year, while iShares Russell 1000 Value ETF increased nearly 6%.
“We think there’s a place for both growth and value in a broader portfolio — it’s just that people tend to lean more towards growth going into the second half of the year,” he added. “There have been periods when the pendulum swung back in favor of value.”
FTSE Russell CEO Fiona Bassett said on “ETF Edge” that the indices are built to reflect the nature of the market.
“One of the benefits of the Russell franchise in general is our ability to offer different exposures,” she said. “So for people who want concentrated exposure to value or growth, we have indices available to do that.”
As of May 31, FactSet reports the Russell 1000 Growth ETF’s top three holdings were Microsoft, Apple And Nvidia. Meanwhile, the top holdings of the Russell 1000 Value ETF are Berkshire Hathaway, JPMorgan Chase And Exxon Mobil.
