The Russell rebalancing could lead to growth and increased value in growth stocks.
The second half of the year may see a bullish move for both value and growth.
The annual rebalancing of the FTSE Russell could give a boost to value stocks, which have been underperforming, according to Todd Rosenbluth of VettaFi.
"The head of research at the firm advised paying attention to value, stating, "It feels like growth has outperformed value for a long time.""
The Russell indexes underwent their annual reconstitution on Friday, reflecting changes in the market as companies grow and shift. The Russell 1000 is up 20% so far this year, while the Russell 2000 is up almost 6%.
""Just as people tend to prioritize growth over value in their portfolios, there have been times when the market has shifted back towards value," he stated."
Fiona Bassett, CEO of FTSE Russell, stated on "ETF Edge" that the indices are constructed to mirror the characteristics of the market.
"One advantage of the Russell franchise is our ability to offer various exposure sleeves, such as value or growth indices, for those seeking concentrated exposure."
The Russell 1000 Growth ETF's top three holdings are, as of May 31, according to FactSet, while the Russell 1000 Value ETF's top holdings are, also as of May 31, as reported by FactSet.
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