Value Strategy Outperformance

Value Strategy has outperformed the market in 2022. In fact, the iShares Russell 1000 Value ETF (IWD) has been only down year to date while the iShares Russell 1000 Growth ETF has been down 28% in 2022. The S&P 500 has fallen nearly 20%. This would mark the first time since 2016 that the IWD outpaces both the S&P 500 and IWF since 2016. It’s also just the third time in 10 years that value has outpaced growth.

The moves come at a time when the Federal Reserve is raising interest rates to continually fight inflation, making value stocks more attractive to investors. Value stocks, which trade at a discount to the market, are generally fundamentally solid. With the Fed is signaling that it will keep raising rates until 2023, U.S. stocks could be in for another strong year relative to economic growth and the broader market.

Therefore, our large-cap value AI strategy has outperformed the market not only this year but in the long term as well. In addition, our strategy has an annual return of 19.58%, well above the S&P 500 average annual return (Refer to Chart 1). 

Chart 1 Large Cap Value Details

Chart 2 Large-Cap Value Performance