The iShares Russell 1000 Value ETF climbed 2.7% last week, more than its growth counterpart which rose 2%, a welcome gain after a tough stretch where the two ETFs had the widest margin between them in over 20 years, reports an article in Barron’s. During that period, the value ETF dropped 1.6% while the Russell 1000 Growth ETF rose 4.1%.
Validea Exclusive Discount Offer
Join Thousands of Investors Who Benefit From Validea’s Proven Systematic Strategies. 25% Off Annual Standard and Professional Subscription During Month of March.
That margin was the most outperformance of growth over value since 2001, with value dragged down even further by plummeting bank stocks while tech stocks drove growth higher. Investors poured into the technology sector as interest rates fell, bolstering the value of future earnings which growth stocks rely heavily on. The Invesco QQQ Trust, which contains the top 100 stocks in the Nasdaq index, shot up nearly 6% as a result. Meanwhile, bank stocks plunged 15% in the wake of the Silicon Valley Bank collapse and fears that more regional banks would go under, the article contends.
But while value seemed to dominate during last year’s tech rout, growth stocks have reclaimed their crown so far this year, with the iShares Russell 1000 Growth ETF up 11.1% so far in 2023 versus its value counterpart which is down 1.4%.
Validea runs stock and ETF models based on investment strategies with proven long-term track records. If you’re new to Validea, consider taking a look at our product overview or introductory videos.