Are you keeping an eye on value and growth stocks in the market? As we move into the second half of the year, there could be a promising outlook for both categories.
According to Todd Rosenbluth, head of research at VettaFi, value stocks, which have been trailing behind growth stocks, might see a boost from the FTSE Russell’s annual rebalancing – one of the significant events on Wall Street’s calendar.
Rosenbluth advised investors to pay attention to value stocks as it seems like growth has been outperforming value for a while now. The recent annual reconstitution of the Russell indexes reflects changes in the market as companies evolve and grow. The iShares Russell 1000 Growth ETF has already seen a 20% increase this year, while the iShares Russell 1000 Value ETF is up by almost 6%.
It is essential to maintain a balance between growth and value stocks in your portfolio. While growth stocks are currently more popular heading into the second half of the year, there have been times when value stocks have taken the spotlight. Fiona Bassett, CEO of FTSE Russell, emphasized the diversified exposure that the indices provide, catering to those seeking concentrated exposure to either value or growth stocks.
As of May 31, the top three holdings of the Russell 1000 Growth ETF include Microsoft, Apple, and Nvidia. On the other hand, the top holdings of the Russell 1000 Value ETF are Berkshire Hathaway, JPMorgan Chase, and Exxon Mobil.
At Extreme Investor Network, we understand the importance of staying informed about market trends and events like the FTSE Russell’s annual rebalancing. By keeping a pulse on both value and growth stocks, investors can make well-informed decisions to optimize their portfolios and potentially maximize returns. Stay tuned for more expert insights and strategic investment tips to navigate the financial landscape effectively!