2021 Q3 Market Review

Thursday, October 21, 2021 5,272 views

Mark Hebner summarizes the market's performance during the third quarter of 2021 & demonstrates the difficulty in picking the next asset class winner.


Short-term Size and Value Differences


Russell 2000 Index: The Russell 2000 index is an index measuring the performance of approximately 2,000 smallest-cap American companies in the Russell 3000 Index, which is made up of 3,000 of the largest U.S. stocks. It is a market-cap weighted index.

Russell 2000 Value Index: The Russell 2000 Value Index refers to a composite of small cap companies located in the United States that also exhibit a value characteristic (lower price to book ratios).

Russell 1000 Index: The Russell 1000 Index represents the top 1000 companies by market capitalization in the United States. 

Russell 1000 Value Index: The Russell 1000 Value Index measures the performance of the large cap value segment of the US equity universe. It includes those Russell 1000 companies with lower price-to-book ratios and lower expected growth values.

Russell Micro Cap Index: The Russell Microcap Index measures the performance of the microcap segment of the U.S. equity market. It consists of the smallest 1,000 securities in the small-cap Russell 2000� Index, plus the next 1,000 smallest eligible securities by market cap.

Russell 1000 Growth Index: The Russell 1000 Growth Index measures the performance of the large cap growth segment of the US equity universe. It includes those Russell 1000 companies with higher price-to-book ratios and higher forecasted growth values.

Russell 2000 Growth Index: The Russell 2000 Growth Index is a subset of companies with higher price-to-value ratios, or those expected to have higher growth values in the future.



This video is a service of Index Fund Advisors, Inc. ("IFA"), a Registered Investment Adviser. This is not to be construed as an offer, solicitation, recommendation, or endorsement of any particular security, product or service. There is no guarantee investment strategies will be successful. Investing involves risks, including possible loss of principal. Indexes are not available for direct investment and performance does not reflect expenses of an actual portfolio. IFA Index Portfolios are recommended based on time horizon and risk tolerance. Allocations and holdings are subject to change.  

For HYPOTHETICAL back-tested performance data shown in this video, including sources, updates, and important disclosures, see ifabt.com. Indexes are labeled with letters to designate the index name and are defined at indexdescriptions.com. The HYPOTHETICAL back-tested performance of the indexes was achieved with the benefit of hindsight; it does not represent actual investment strategies for the entire period; and it does not reflect the impact that economic and market factors may have had on the advisor's decision making if the advisor were actually managing client money during the period shown. Unless indicated otherwise, the performance of the IFA Indexes when shown individually, does reflect the deduction of mutual fund fees, include reinvestment of dividends and capital gains but does not include the deduction of IFA advisory fees, transaction costs or taxes, which if included, would lower performance. IFA Indexes were created by IFA in 2000. Past performance does not guarantee future results. IFA utilizes "standard deviation" as a quantification of risk, see the definition in the IFA glossary

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