Growth Stocks Outpace Value By 10% As 2023 Nears End: Will The Trend Continue?
Portfolio Pulse from Surbhi Jain
Growth stocks, particularly from the Information Technology and Communication Services sectors, have outperformed value stocks in 2023. The iShares Core S&P U.S. Growth ETF (IUSG) has seen a return of 26.42% over the past year, while the iShares Core S&P U.S. Value ETF (IUSV) has returned 15.47%. IUSG is heavily weighted towards tech sectors with top holdings like AAPL, MSFT, NVDA, GOOG, and TSLA. IUSV is more diversified, with a significant weight in the Finance sector and top holdings including MSFT, META, and AMZN. Despite value stocks showing better performance in the past month, growth stocks are expected to continue their momentum, especially with the expansion of AI technology.
December 13, 2023 | 2:03 pm
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POSITIVE IMPACT
Apple Inc, as a top holding in IUSG, benefits from the ETF's growth and the broader trend favoring growth stocks.
Apple's position as a leading company in the growth-oriented IUSG ETF suggests a positive short-term outlook, especially with the tech sector's growth.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
Alphabet Inc, with its significant weight in IUSG, may continue to see growth, especially with tech and AI sectors pushing forward.
Alphabet's significant role in the growth-oriented IUSG ETF and the tech sector's positive trajectory suggest a favorable short-term outlook.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
IUSG has outperformed IUSV with a significant return over the past year, driven by growth stocks, especially in tech sectors.
Given the strong performance of growth stocks and the continued expansion of AI technology, IUSG is likely to maintain its positive momentum in the short term.
CONFIDENCE 85
IMPORTANCE 80
RELEVANCE 90
POSITIVE IMPACT
Microsoft Corp is a top holding in both IUSG and IUSV, benefiting from the performance of both growth and value sectors.
Microsoft's presence in both ETFs positions it well to benefit from market movements favoring either growth or value stocks, providing a stable outlook.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 70
POSITIVE IMPACT
NVIDIA Corp, as part of IUSG's portfolio, is likely to benefit from the growth trend, particularly with the rise of AI technology.
NVIDIA's role in the tech sector and AI advancements could lead to continued positive performance in the short term.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
POSITIVE IMPACT
Tesla Inc, as a major holding in IUSG, could benefit from the ETF's performance and the overall trend towards growth stocks.
Tesla's position in the growth-focused IUSG ETF and the momentum in growth stocks provide a positive short-term outlook for the company.
CONFIDENCE 80
IMPORTANCE 60
RELEVANCE 60
NEUTRAL IMPACT
Amazon.com Inc, with its presence in IUSV, could see mixed impacts due to the recent value uptick and the dominance of growth stocks.
Amazon's role in IUSV may benefit from the recent performance of value stocks, but the company's growth prospects are also tied to the broader trend favoring growth stocks.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50
NEUTRAL IMPACT
IUSV has seen lower returns compared to IUSG but has recently outperformed growth stocks in the past month, indicating a potential shift.
Although IUSV has underperformed compared to IUSG over the past year, its recent outperformance suggests a potential shift that could attract investors seeking stability.
CONFIDENCE 75
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
Meta Platforms, as a top holding in IUSV, may benefit from the recent uptick in value stocks but faces competition from growth trends.
While Meta Platforms is a significant part of IUSV, the recent shift towards value may not be enough to offset the broader market's preference for growth stocks.
CONFIDENCE 70
IMPORTANCE 50
RELEVANCE 50