spectrum of the US market. Stocks in the top 70% of the capitalization of the US equity market are defined as large cap.
Despite strong returns, US Large Cap Blend ETFs, including the Russell Large Cap Index (NYSE:IWB), have underperformed mid cap and small cap ETFs. With a one-year trend score of 8.52%, the Russell Large Cap Index falls towards the bottom of the US Style Return Table as seen below.
US Equity Style Return
|Russell Smallcap Growth||(IWO)||14.01%||13.06%||^|
|Russell Midcap Growth||(IWP)||12.57%||11.91%||^|
|Russell Smallcap Index||(IWM)||11.05%||9.92%||^|
|Russell Midcap Indedx||(IWR)||10.9%||10.15%||^|
|Russell Midcap Value||(IWS)||9.84%||9.03%||^|
|Russell Largecap Growth||(IWF)||9.25%||8.24%||^|
|Russell Smallcap Value||(IWN)||8.56%||7.26%||^|
|Russell Largecap Index||(IWB)||8.52%||7.38%||^|
|Russell Largecap Value||(IWD)||8.15%||6.96%||^|
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
US Large Cap Blend
|Description||Symbol||1 Yr||3 Yr||5 Yr||Avg. Volume(K)||1 Yr Sharpe|
|SPDR S&P 500||(SPY)||15.13%||1.42%||2.64%||169,849||83.79%|
|iShares S&P 500 Index||(IVV)||14.66%||2.18%||2.45%||2,992||79.99%|
|Vanguard Total Stock Market||(VTI)||17.54%||3.35%||3.48%||1,833||92.09%|
|iShares Russell 1000||(IWB)||15.83%||2.66%||2.84%||886||86.04%|
|Rydex S&P Equal Weight||(RSP)||18.18%||5.79%||4.44%||1,115||94.46%|
|iShares S&P 100||(OEF)||12.47%||0.94%||2.15%||883||67.2%|
|Vanguard Large Cap||(VV)||15.8%||2.78%||3.54%||223||85.55%|
|Schwab U.S. Large Cap||(SCHX)||15.95%||NA||NA||297||87.97%|
|Vanguard S&P 500||(VOO)||NA||NA||NA||311||NA|
Among US Large Cap Blend ETFs the Ryder S&P Equal Weight ETF (NYSE:RSP) and the Vanguard Total Stock Market ETF (NYSE:VTI) have performed the strongest, offering one-year returns of 18.18% and 17.54% respectively. The ETF in the sector with the highest level of average volume, the SPDR S&P 500 Index, returned 15.13% in the past year, near the middle of the pack.
While US Large Cap Blend ETFs have provided investors with strong returns in recent periods, many in the market believe that the sector is due for a retraction based on overheated valuations. For the time being, investors will likely find better returns elsewhere.
Disclosure: MyPlanIQ does 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.
LTI Systems, Inc. is the operator of MyPlanIQ.com and ValidFi.com. The founders of LTI Systems have extensive technology and business background in computer and semiconductor industries. They have been using the strategies provided by MyPlanIQ for their own personal retirement and taxable investments. The mission of LTI Systems is to make wealth management investment strategies that are used to be only accessible to institutions and high net worth individuals available to private investors with a fraction of flat cost and ease of use. The founders of LTI Systems, investors themselves, take pride in creating such a system and service for investors by taking the perspective from the investor side. They are using the system and the strategies for their own investment and align their interests with their customers.
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