Megacap growth stocks outperformed all other segments of the U.S. equity market in July as the Russell Top 200 index lost 1.2% for the month. The Russell 1000 growth index lost 1.6% in July, and the equivalent value indexes each lost more than 4% for the month. The Russell 1000 value index lost 4.6% for the month. Year-to-date through July 31, the Russell 1000 growth index gained 6.45%, compared with 1.32% for the Russell 1000 value index.
The larger, more established companies in the growth indexes are better positioned to take advantage of the slowing economic growth, consumer spending and profit growth the markets are experiencing, said Stephen Wood, senior portfolio strategist at Russell Investment Group.