Here is our twice-quarterly style box spreadsheet for readers.
To preface the content, using iShare ETF’s for style-box returns, Value is clearly outperforming Growth across all market-caps.
However, using the Vanguard style-box ETF’s and YTD returns, the Growth style is still outperforming across all market-caps as of 11/15/19.
LCG = large-cap growth, LCV = large-cap value, etc. etc.
Finally, let’s compare SPYG (SP 500 Growth ETF) to the SPYV (SP 500 Value ETF) for the YTD timeframe:
This is the conventional wisdom that most investors have been reading about, i.e. large-cap value has started to outperform large-cap growth as of early October, 2019.
Summary / conclusion: This style-box update is published every six weeks for readers, but to understand the iShares relative performance versus the Vanguard style-box ETF’s, more homework is required.
One thing is clear though, probably due to the Financial sector which is leading sector performance for 1 and 3-month timeframes (per one source, but i can’t remember which one) Value outperformance has returned to the large-cap space. Apple and JP Morgan are the largest two components of the SPY Value ETF (SPYV) while Microsoft (MSFT) and Amazon (AMZN) are the largest two names in the SPY Growth ETF (SPYG).
For client portfolio’s Microsoft has been the #1 weight the last 5 years, while Schwab (SCHW) Amazon (AMZN) and JP Morgan (JPM) are #’s 2,3 and 4 respectively. XLF is #5.
Both Growth and Value are balanced, to smooth out Growth volatility.
Selling Apple last year though looks like sheer stupidity.
Earnings updates coming out this weekend.
Thanks for reading.