A positive outlook is expected for both value and growth stocks in the second half of the year. According to Todd Rosenbluth from VettaFi, value stocks, which have been trailing behind, could see a boost from the annual rebalancing by FTSE Russell, one of the biggest events on Wall Street.
The iShares Russell 1000 Growth ETF has seen a 20% increase this year, while the iShares Russell 1000 Value ETF has risen almost 6%. Rosenbluth suggests that both growth and value stocks have a place in a diversified portfolio, although there has been a recent preference for growth stocks.
FTSE Russell CEO Fiona Bassett explained that their indices are designed to reflect the market’s nature, offering different exposure options for those interested in value or growth stocks.
As of May 31, the top three holdings for the Russell 1000 Growth ETF are Microsoft, Apple, and Nvidia. On the other hand, the top holdings for the Russell 1000 Value ETF include Berkshire Hathaway, JPMorgan Chase, and Exxon Mobil.