We are initiating coverage of the subclasses or styles in the U.S. equities asset class. We use representative ETF's for each subclass and maintain a weekly trend score.
This can be used to determine which asset classes you want in your portfolio and if you want to rotate different subclasses in our out.
Last week saw downward pressure on all subclasses but the small cap equities were most under the gun. Growth is doing the best in each of the large, medium and small cap stocks and midcap stocks are at the top of the heap.
We use this information in balancing strategic and tactical asset allocation strategies.
More performance can be found here.
|Assets Class||Symbols||01/21 |
|Russell Midcap Growth||IWP||12.14%||15.48%||v|
|Russell Midcap Index||IWR||10.87%||13.65%||v|
|Russell Smallcap Growth||IWO||10.72%||17.19%||v|
|Russell Midcap Value||IWS||10.43%||13.13%||v|
|Russell Largecap Growth||IWF||9.7%||11.48%||v|
|Russell Smallcap Index||IWM||9.58%||15.83%||v|
|Russell Largecap Value||IWD||9.41%||10.74%||v|
|Russell Smallcap Value||IWN||9.22%||15.01%||v|
|Russell Largecap Index||IWB||9.15%||10.65%||v|
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
(Click to enlarge)
The small cap stocks are all under pressure and the growth fund drops from first to third place and may well be continuing its fall.
The two midcap funds are falling but not as drastically and so floats to the top of the list.
The smallcap value is taking a pounding and may end up at the bottom of the list. The large cap stock value and index funds are down but in proportion to the sink in the market.
Next week, we will see if the trend continues favoring midcap stocks and whether this will trigger a shift in holdings.
Disclosure: We do not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.