Global Market Breakdown – YTD

Published September 21st, 2017 in News | No Comments »

I am pleased to provide this report and summary data for the Global Market Breakdown on a YTD basis. In the past, we have provided this information monthly and DFA separately provided a quarterly report. In an effort to better understand the relative performance of various sectors of the world market and look at an attribution analysis of our models, this report should be helpful. Please click here to to view additional details (including 1Q and 2Q).

Global Market Breakdown YTD 2017

  • Global equity markets (MSCI All Country Index) have advanced 15.5% YTD lead by Emerging Markets which are up 28.6% (MSCI Emerging Markets). US markets (Russell 3000) are up 11.2% and Developed (MSCI World ex US) markets are up 16.6%.
  • In the US, Growth (Russell 3000 Growth) is up 18.5% while Value (Russell 3000 Value) is up 4.3%. Large cap (Russell 1000) is up 11.8% and Small cap (Russell 2000) is up 4.4%.
  • In Developed markets, Small cap (MSCI World ex US Small Cap) is up 20.9% and Large Cap (MSCI World ex US Large) is up 15.9%. Growth (MSCI World ex US), is up 19.5% while Value (MSCI World ex US) is up 14%.
  • In emerging markets, Growth (MSCI EM Growth Index) is up 34.9% and Value (MSCI EM Value Index) which was up 22.7%. Large Cap (MSCI EM Large Cap) is up 29% and Small Cap (MSCI EM Small Cap) is up 22.7%

Note: all MSCI is gross dividends 

General Observations

  • It has been a strong year for equities on a worldwide basis.
  • PCA Models have been helped somewhat by global diversification as international markets are stronger than the US, YTD.
  • Premiums/Tilt: Growth is beating Value throughout the world. Large is beating Small in the US and EM, while Small, is outperforming Large in Developed markets. This is in contrast to the long-term factual data that shows Small beats Large and Value beats growth over the long run.

Thank you,

Jerry Herman, CFA
Co-Chair of the Investment Committee