Growth stocks outperformed value stocks in May across all market capitalizations in Russell Investment Group's U.S. indexes due to a shift toward technology firms, said Dave Hintz, manager research analyst at Russell. But managers who spoke to Russell don't believe the move toward growth stocks will be a long-term trend, he said, adding that some managers have become "slightly more positive" on technology stocks.
The Russell 2000 Growth index posted the biggest return among the firm's U.S. equity indexes for the month, at 7.05%. The small-cap Russell 2000 index returned 6.55% in May and, for the first time in six months, outpaced the large-cap Russell 1000 index, which returned 3.54%. The large-cap Russell 1000 Growth index returned 4.84% in May, beating out the Russell 1000 Value index's 2.41%. The growth index has only outpaced the value in two of the past 12 months, the last time in December. However, growth stocks "rallied somewhat in May but still lag behind value for the year," Paola Nealon, manager research analyst at Russell, said in a statement.