An upward movement could be on the agenda for both value and growth stocks during the second half of the year.
VettaFi’s Todd Rosenbluth thinks value stocks, which have lagged the market, could benefit from one of Wall Street’s biggest events of the year: the annual FTSE Russell rebalancing.
“It’s worth paying attention to value,” the firm’s director of research told CNBC’s “ETF Edge” this week. “It feels like…for a long time, growth has outpaced value. »
On Friday, the Russell indexes underwent their annual reconstitution to reflect market changes as companies grow and evolve. The iShares Russell 1000 Growth ETF is up 20% so far this year, while the iShares Russell 1000 Value ETF is up almost 6%.
“We think there is a place for both growth stocks and value stocks within a broader portfolio, but people are more biased toward growth stocks as we head into the second half of the year,” he added. “There have been periods where the pendulum has swung in favor of value stocks.”
Fiona Bassett, CEO of FTSE Russell, said on ‘ETF Edge’ that indices are built to reflect the nature of the market.
“One of the benefits of the Russell franchise in general is our ability to offer different types of exposure,” she said. “So for those who want to benefit from concentrated exposure to value or growth, we have the necessary indices. »
According to FactSet, as of May 31, the Russell 1000 Growth ETF’s top three holdings are Microsoft, Apple and Nvidia. As for the Russell 1000 Value ETF, its main holdings are Berkshire Hathaway, JPMorgan Chase and Exxon Mobil.
News Source : www.cnbc.com
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