Value Stocks Hit 15-Month Low Against Growth As AI Fuels Tech's Vengeance Over 2022's Rate-Hike-Induced Market Fall
Portfolio Pulse from Piero Cingari
Value stocks have fallen to a seven-month low in relation to growth stocks, with AI-related rallies propelling technology equities. The ratio between iShares Russell 1000 Value ETF (IWD) and iShares Russell 1000 Growth ETF (IWF) has reached levels not seen since January 2022, indicating underperformance of value-oriented companies.
May 25, 2023 | 9:18 pm
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POSITIVE IMPACT
iShares Russell 1000 Growth ETF (IWF) has outperformed value stocks, driven by AI-related rallies in technology equities such as Apple, Microsoft, NVIDIA, and Alphabet.
The article highlights that the IWF has outperformed value stocks due to AI-related rallies in technology equities. Major contributors to the growth ETF's performance include Apple, Microsoft, NVIDIA, and Alphabet.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100
NEGATIVE IMPACT
iShares Russell 1000 Value ETF (IWD) has fallen to a seven-month low against growth stocks, underperforming due to losses in energy, utilities, financial, and real estate sectors.
The article states that the IWD/IWF ratio has fallen to levels not seen since January 2022, indicating underperformance of value-oriented companies. Losses in energy, utilities, financial, and real estate sectors have weighed down the value-invested ETF.
CONFIDENCE 90
IMPORTANCE 80
RELEVANCE 100