Russell Growth and Value Indexes: the enduring utility of style

FTSE Russell

Mark Barnes

Research

30 Pages

Russell examines the long standing cycle between growth and value investing, arguing that extreme valuation spreads may signal a potential turning point. The paper highlights that the valuation gap between growth and value reached one of the widest levels in history, exceeding levels seen during the late 1990s.

Key Takeaways

Extreme Valuation Spread: The growth versus value valuation gap reached over 90th percentile historically, surpassing levels observed during the 2000 tech bubble.
Mean Reversion Potential: Historically, after similar spreads, value outperformed growth by ~5–7% annually over the following 5 years.
Cycle Duration Matters: Growth outperformance persisted for over 10 years, one of the longest stretches on record, increasing reversal probability.
VIEW FULL REPORT

Join our newsletter to have all of this content + Exclusive Newsletter Bonus Content delivered to your inbox every week

Related Content

Dividends
Investors Piled Into Dividend Stocks in Q1. Here’s Why They Might Be Disappointed
May 2026
Portfolio Management
The Active Side of Indexing
May 2026
Active Management
U.S. Persistence Scorecard
May 2026

The information contained in this communication is of a general nature for informational purposes only, and does not constitute financial, investment, tax or legal advice. The information contained within this communication reflects the opinions of those referenced herein, and do not reflect the opinions of The Idea Farm, L.P. and its affiliates. Such opinions expressed herein are as of the date of production and are subject to change at any time without notice due to various factors, including changing market conditions or tax laws. Where data or information prepared by third parties is presented, no representation, warranty, or undertaking, expressed or implied, is given to the accuracy or completeness of such information by The Idea Farm, L.P. or any other person. While such sources are believed to be reliable, The Idea Farm, L.P. does not assume any responsibility for the accuracy or completeness of such information and does not undertake any obligation to update the information contained herein as of any future date. Any links to third party websites are offered only for use at your own discretion. The Idea Farm L.P., and its affiliates, are separate and unaffiliated from any third parties listed herein and are not responsible for their products, services, policies or the content of their website. All investments are subject to varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy or product referenced directly or indirectly in this communication will be profitable, perform equally to any corresponding indicated historical performance level(s), or be suitable for your portfolio. Past performance is not an indicator of future results.

Scroll to Top