We are initiating weekly tracking of the nine different styles or subclasses in the US Equity asset class. We use ETFs to represent each sub-class. We track returns over 1, 4, 13, 26, and 52 weeks and aggregate them to get a trend score. We then track the trend score to see the direction of each representative ETF in the subclass. By using an ETF from the same provider, we are attempting to normalize out performance of the ETF over the performance of the subclass.
|Russell Smallcap Growth||(IWO)||20.85%||19.88%||^|
|Russell Smallcap Index||(IWM)||18.7%||17.58%||^|
|Russell Midcap Growth||(IWP)||18.3%||18.8%||v|
|Russell Smallcap Value||(IWN)||17.28%||16.08%||^|
|Russell Midcap Index||(IWR)||16.68%||16.74%||v|
|Russell Midcap Value||(IWS)||15.91%||15.66%||^|
|Russell Largecap Growth||(IWF)||14.31%||14.08%||^|
|Russell Largecap Index||(IWB)||13.44%||13.04%||^|
|Russell Largecap Value||(IWD)||13.27%||12.67%||^|
The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).
We note that most of the of the sub-classes are positive as the US bull market continues. We also note that Midcap is dropping in comparison to Smallcap – Midcap has been at the top of the list but is starting to be replaced by Smallcap. Finally we note that the order within a sub-class is Growth, Index (Blend), Value.
Although the entire top three dropped compared to the prior week, the smalcaps dropped less than the midcap stock. The continuing bull market is moving investors away from the relative safety of large cap to the small cap stocks. The midcap, which had been a nice midway point, is being supplanted by the smallcap options as investors seek to maximize returns.
The large cap stocks are solidly at the bottom of the table as investors look for higher returns. We note that the Largecap Value has the best performance in the short term even though it has had the poorest return over the longer time horizon.
We would expect to see this picture to remain for some time unless the unrest in the Middle East and North Africa causes investors to look for safer US equities.
Symbols: iShares Russell 2000 Growth Index (NYSE:IWO), iShares Russell 2000 Index (NYSE:IWM), iShares Russell Midcap Growth Index (NYSE:IWP), iShares Russell 2000 Value Index (NYSE:IWN), iShares Russell Midcap Index (NYSE:IWR), iShares Russell Midcap Value Index (NYSE:IWS), iShares Russell 1000 Growth Index (NYSE:IWF), iShares Russell 1000 Index (NYSE:IWB), iShares Russell 1000 Value Index (NYSE:IWD).
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. 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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