Growth stocks regain momentum

Growth stocks' 11.5% second-quarter return was 600 basis points higher than its value stock counterpart. This performance was a reversal from the first quarter when value stocks' 10.8% return easily outpaced the growth stocks' 1.7% return. However, while value equities edged out growth stocks over the past year, the five-and-10-year returns tell a different story.

Broken out by market cap, large- and midcap growth stocks led over their respective value stock counterparts in the most recent quarter. But the reverse was true for small caps, where value trumped growth, as it did in the first quarter. Over longer periods, the five-year and 10-year returns on value stocks trailed growth stocks for all market cap classifications.

Turning to risk, large-cap growth stocks had a higher standard deviation than similarly sized value stocks over the one-year, five-year, and 10-year periods. But the reverse was true for mid- and small-cap stocks, with value stocks generally having a higher risk across time despite lower returns.