Growth stocks have outperformed value stocks over the past 3 months and year-to-date according to WSJ columnist Ian Salisbury.
In Growth, Not Value, Is Tops Salisbury reports that the Russell 3000 Growth Index is up 36% in 2009 compared to just 20% for the comparable Value Index. One driver of the performance gap — floundering banks tend to be in the value camp while market leading tech stocks are mostly in the growth index.
ETF investors who anticipate that trend will continue can gain exposure through the iShares Russell 3000 Growth Index Fund (IWZ). Contrarians can also participate through the iShares Russell 3000 Value Index Fund (IWW).