News Column

The Summer of U.S. Small Caps -- U.S. Mega-Caps Underperform Last 3 Months

Aug 16 2013 12:00AM



SEATTLE, WA -- (Marketwired) -- 08/16/13 -- "The U.S. economy continues to improve while Europe is becoming 'less bad' -- and verging on getting 'better.' But as broader global growth has slowed and become less even in 2013, the United States has taken a lead role in the global growth story," said Stephen Wood, Chief Market Strategist for Russell Investments.

----------------------------------------------------------------------------Russell Indexes YTD (a/o 8.15.13) Last 3 Months (a/o 8.15.13)----------------------------------------------------------------------------Russell 2000 Index 22.0% 4.6%----------------------------------------------------------------------------Russell Top 50 Mega Cap Index 15.3% 0.8%------------------------------------------------------------------------------------------------------------------------------------------------------- Russell Top 50 Mega Cap Index Russell 2000 Top 10 Holdings Top 10 Holdings--------------------------------------------------------------------------- APPLE INC COSTAR GROUP INC--------------------------------------------------------------------------- EXXON MOBIL CORP ATHENAHEALTH INC--------------------------------------------------------------------------- MICROSOFT CORP COMMVAULT SYSTEMS INC--------------------------------------------------------------------------- JOHNSON & JOHNSON ULTIMATE SOFTWARE GROUP--------------------------------------------------------------------------- GENERAL ELECTRIC CO FIRSTMERIT CORP--------------------------------------------------------------------------- CHEVRON CORP ACUITY BRANDS INC--------------------------------------------------------------------------- GOOGLE INC PROSPERITY BANCSHARES--------------------------------------------------------------------------- PROCTER & GAMBLE CO QUESTCOR PHARM INC--------------------------------------------------------------------------- JPMORGAN CHASE & CO CHART INDUSTRIES INC--------------------------------------------------------------------------- WELLS FARGO & CO BRUNSWICK CORP---------------------------------------------------------------------------

Index Data Requests: HERE

"Although more volatile, small caps stocks also have relatively much less international exposure, and this is likely an important component of small cap stocks' outperformance over mega cap stocks as seen in the past 3 months and YTD returns of the Russell 2000® index versus the Russell Top 50 Mega-Cap® Index," noted Wood.

Source: Russell Investments. Returns are denominated in US dollars.

Please note: Indexes are unmanaged and cannot be invested in directly. Returns represent past performance, are not a guarantee of future performance, and are not indicative of any specific investment. Russell's publication of the Indexes or Index constituents in no way suggests or implies a representation or opinion by Russell as to the attractiveness of investing in a particular security. Inclusion of a security in an Index is not a promotion, sponsorship or endorsement of a security by Russell and Russell makes no representation, warranty or guarantee with respect to the performance of any security included in a Russell Index.

Opinions expressed by Mr. Wood reflect market performance and observations as of August 15, 2013 and are subject to change at any time based on market or other conditions without notice. Past performance does not guarantee future performance

This material is not an offer, solicitation or recommendation to purchase any security.

Nothing contained in this material is intended to constitute legal, tax, securities or investment advice, nor an opinion regarding the appropriateness of any investment, nor a solicitation of any type. The general information contained in this publication should not be acted upon without obtaining specific legal, tax and investment advice from a licensed professional. The information, analysis and opinions expressed herein are for general information only and are not intended to provide specific advice or recommendations for any individual entity.

Russell Investment Group is a Washington, USA corporation, which operates through subsidiaries worldwide, including Russell Investments, and is a subsidiary of The Northwestern Mutual Life Insurance Company.

Source: Marketwire

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