U.S. Large Cap Growth Equities

• The Russell 1000 Growth Index has outperformed broad market equities in 12-month prior through 12-month post recession end date periods in four of the last six U.S. recessions since 1980.
• Excluding 2001’s dot-com recession, the Russell 1000 Growth Index has averaged a +7.2% excess return versus the S&P 500 Index in these periods.
• Looking ahead, U.S. large cap growth equities enable solid exposure to secular growth markets well positioned to withstand pressure from tighter financial conditions such as:
  • Artificial Intelligence
  • Health Care Innovation
  • Transformational Mobility
  • Industrial Automation
  • Emerging Fintech Platforms

Source: FactSet Research Systems. Performance data shown represents past performance and is no guarantee of future results.

• Despite recent weakness, the U.S. Dollar Index still traded at a 14.0% premium relative to its 20-year average as of 12/31/2023.

• If mean reversion were to occur moving ahead, the Russell 1000 Growth is more exposed to non-US revenue sources and could likely experience stronger benefit relative to the more domestically tilted S&P 500 and Russell 1000 Value Indices.

Source: FactSet Research Systems. Performance data shown represents past performance and is no guarantee of future results.

• The Russell 1000 Growth Index has become highly concentrated; its top ten holdings weight has increased from 21.6% to 51.3% over the past decade.
• Historically, past periods of less meaningful Index concentration have subsequently been followed by stronger active manager performance as these positions have unwound and managers with underweight stances have generally benefited.

• U.S. equities have outperformed non-U.S. equities over the past decade; the S&P 500 returned 12.0% versus 4.3% for the MSCI EAFE Index over the last 10 years.
• Active U.S. large cap growth managers typically maintain exposure to non-U.S. companies with strong earnings growth potential, which has been a meaningful headwind. A potential weakening dollar and non-U.S. outperformance may provide a tailwind for active managers looking ahead.

Source: FactSet Research Systems & Morningstar Direct: Performance data shown represents past performance and is no guarantee of future results.
The Russell 1000 Growth Index has not been designated in a specific Morningstar category and the rankings presented are for illustrative purposes only. No fees have been taken into consideration for the index ranking. The highest (or most favorable) percentile rank is 1 and the lowest (or least favorable) percentile rank is 100.

Important Information

The views expressed herein may not be reflective of current opinions, are subject to change without prior notice, and should not be considered investment advice or a recommendation to purchase or sell a particular security.

Past performance is no guarantee of future results.

The S&P 500 Index is an unmanaged index generally representative of the U.S. market for large capitalization equities. The Russell 1000® Growth Index is an unmanaged index generally representative of the U.S market for larger capitalization growth stocks. The Russell 1000® Value Index measures the performance of the large-cap value segment of the US equity universe. The Russell 1000® Growth Index and Russell 1000® Value Index, and Russell 2000® Growth Index and Russell® are trademarks of Frank Russell Company. The MSCI EAFE (ND) Index is an unmanaged index generally representative of major overseas stock markets. These unmanaged indices do not reflect fees and expenses and are not available for direct investment.

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Diversification does not assure a profit or protect against loss in a declining market.

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