March 22, 2019
Investors commonly expect growth companies to provide the greatest long-term capital appreciation in their portfolios and expect value companies to provide capital protection, with appreciation. However, as noted in the chart below, our long-term analysis of the major US stock market indices shows that the Russell 2000® Value Index historically has provided the greatest long-term capital appreciation, with a cumulative return of 583% for the period April 30, 1997 to Feb. 28, 2019, outperforming small-cap growth’s return of 405% and the S&P 500® Index’s return of 424%.
Long-term capital appreciation
Morningstar. Time period shown is April 30, 1997 to Feb. 28, 2019.
Past performance is no guarantee of future results.
What this means for investors:
The search for investment growth remains a central, critical goal for today’s investors — but finding a reliable source to fuel portfolio growth can be a challenge. We believe there is an opportunity for the small-cap value asset class to potentially provide that solution. Visit Define Your Destination and learn more about what your investments can help you achieve.