Value vs Growth Across the Market Cap’s

FC – Value vs Growth

The financial media of late is talking about the “growth vs value” debate, and the out-performance of growth since the 2009 market bottom.

Growth has certainly performed better vs value investing, particularly the first six months of 2017.

However note the performance of value last year, particularly small-cap value, versus large-cap growth.

This year large-cap growth and Tech has shot the lights out for the 6 months of ’17, YTD.

My own experience with this “style-box” analysis is that the trends can typically last the calendar year.

(Apologies for the somewhat scattered periods on the spreadsheet. That will be corrected.)

There are ETF’s today that capture the style box divisions across market cap’s and across the “value v. growth” investing spectrum.

While “large-cap growth” should continue to outperform in the 2nd half of ’17, start preparing for trend reversals.

The IJS ETF is the small-cap value ETF that captures an out-of-favor investing style. (Long small position in IJS, but expecting to add more.)

Remember, in investing, every trend changes.

Thanks for reading.




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