Home Logon FTA Investment Managers Blog Subscribe About Us Contact Us

Search by Ticker, Keyword or CUSIP       
 
 
 
Blog Home
Bob Carey
Chief Market Strategist
Bio
X •  LinkedIn
 

  A Snapshot Of Growth vs. Value Investing (Small-Caps)
Posted Under: Themes
Supporting Image for Blog Post

 
View from the Observation Deck  
  1. We update this post on small-capitalization (cap) stocks every now and then so that investors can see which of the two styles (growth or value) are delivering the better results.
  2. The S&P SmallCap 600 Pure Growth Index closed at 17,143.34 on 10/29/21. It stood 3.23% below its all-time closing high on 2/9/21, according to Bloomberg. The S&P SmallCap 600 Pure Value Index closed at 9,612.85 on 12/29/21. It stood 2.94% below its all-time closing high on 6/8/21.
  3. While the S&P SmallCap 600 Pure Growth Index outperformed its value counterpart in four of the six periods, the S&P SmallCap 600 Pure Value Index has the edge over the past year, including year-to-date.
  4. The returns through 10/29/21 were as follows (Pure Growth vs. Pure Value): 15-year average annualized (11.03% vs. 7.46%); 10-year average annualized (13.95% vs. 11.97%); 5-year average annualized (16.29% vs. 11.30%); 3-year average annualized (13.67% vs. 13.10%); 1-year (58.32% vs. 88.66%) and year-to-date (22.43% vs. 46.62%).
  5. As of 10/29/21, the largest sector weighting in the S&P Small-Cap 600 Pure Growth Index was Health Care at 24.0%, according to S&P Dow Jones Indices. The largest sector in the S&P SmallCap 600 Pure Value Index was Financials at 20.4%.
  6. Data from FactSet indicates that small-cap stocks, as measured by the S&P SmallCap 600 Index, are currently trading at their second-biggest discount relative to the S&P 500 Index in the last 20 years, according to MarketWatch. 
  7. Investors have far more exposure to large-caps than small-caps. As of 9/30/21, Large Blend, Large Growth and Large Value mutual funds and exchange-traded funds (ETFs) in the U.S. reported net assets totaling a combined $9.98 trillion, compared to the $1.11 trillion invested in Small Blend, Small Growth and Small Value mutual funds and ETFs, according to Morningstar. 
This chart is for illustrative purposes only and not indicative of any actual investment. The illustration excludes the effects of taxes and brokerage commissions or other expenses incurred when investing. Investors cannot invest directly in an index. The S&P SmallCap 600 Index is an unmanaged index of 600 stocks used to measure small-cap U.S. stock market performance. The S&P SmallCap 600 Pure Growth Index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest growth characteristics based on three factors: sales growth, the ratio of earnings-change to price, and momentum. It includes only those components of the parent index that exhibit strong growth characteristics, and weights them by growth score. Constituents are drawn from the S&P SmallCap 600 Index. The S&P SmallCap 600 Pure Value Index is a style-concentrated index designed to track the performance of stocks that exhibit the strongest value characteristics based on three factors: the ratios of book value, earnings, and sales to price. It includes only those components of the parent index that exhibit strong value characteristics, and weights them by value score.

Download a PDF of this post, please click here.
Posted on Tuesday, November 9, 2021 @ 11:21 AM • Post Link Print this post Printer Friendly

These posts were prepared by First Trust Advisors L.P., and reflect the current opinion of the authors. They are based upon sources and data believed to be accurate and reliable. Opinions and forward looking statements expressed are subject to change without notice. This information does not constitute a solicitation or an offer to buy or sell any security.
Search Posts
MARKET ANALYSIS
Market Commentary and Analysis
Market Commentary Video
Monthly Talking Points
Quarterly Newsletter
Market Observations
Subscribe To Receive Email
 


 PREVIOUS POSTS
A Snapshot Of The U.S. Dollar
Sector Performance Via Market Cap. (2020 Bear Market & New Bull Market)
A Snapshot Of Materials Stocks
The Price Of Crude Oil Has Surged During The COVID-19 Pandemic
Passive vs. Active Fund Flows
A Global Snapshot Of Government Bond Yields
The Price Of Natural Gas Has Surged
Technology Stocks Have Delivered Strong Returns Since The End Of The Financial Crisis-Induced Bear Market
S&P 500 Index Dividend Payout Profile
The Only Constant Is Change
Archive
Skip Navigation Links.
Expand 20242024
Expand 20232023
Expand 20222022
Expand 20212021
Expand 20202020
Expand 20192019
Expand 20182018
Expand 20172017
Expand 20162016
Expand 20152015
Expand 20142014
Expand 20132013
Expand 20122012
Expand 20112011

Search by Topic
Skip Navigation Links.

 
The information presented is not intended to constitute an investment recommendation for, or advice to, any specific person. By providing this information, First Trust is not undertaking to give advice in any fiduciary capacity within the meaning of ERISA, the Internal Revenue Code or any other regulatory framework. Financial professionals are responsible for evaluating investment risks independently and for exercising independent judgment in determining whether investments are appropriate for their clients.
Follow First Trust:  
First Trust Portfolios L.P.  Member SIPC and FINRA. (Form CRS)   •  First Trust Advisors L.P. (Form CRS)
Home |  Important Legal Information |  Privacy Policy |  California Privacy Policy |  Business Continuity Plan |  FINRA BrokerCheck
Copyright © 2024 All rights reserved.