Value Vs. Growth Across The Market Caps
The financial media of late is talking about the "growth versus value" debate and the outperformance of growth since the 2009 market bottom.
Growth has certainly performed better versus value investing, particularly in the first six months of 2017. However, note the performance of value last year, particularly small-cap value versus large-cap growth.
This year, large-cap growth and Tech has shot the lights out for the 6 months of '17, YTD.
My own experience with this "style-box" analysis is that the trends can typically last the calendar year. (Apologies for the somewhat scattered periods on the spreadsheet. That will be corrected.)
There are ETFs today that capture the style box divisions across market caps and across the "value versus growth" investing spectrum.
While "large-cap growth" should continue to outperform in the second half of '17, start preparing for trend reversals.
The iShares S&P Small-Cap 600 Value ETF (IJS) is the small-cap value ETF that captures an out-of-favor investing style. (Long small position in IJS, but expecting to add more.)
Remember, in investing, every trend changes.
Thanks for reading.
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