US Large Cap Blend ETFs Return Can Be Beaten As Equity Markets Continue Ascent

05/05/2011 0 comments

Large Cap Blend ETFs provide access to both growth and value stocks, looking for high returns while hedging that risk with more stable securities. Large Cap ETFs invest across the entire spectrum of the US market. Stocks in the top 70% of the capitalization of the US equity market are defined as large cap.

Despite strong returns, US Large Cap Blend ETFs, including the Russell Large Cap Index (IWB), have underperformed mid cap and small cap ETFs. With a one-year trend score of 8.52%, the Russell Large Cap Index falls towards the bottom of the US Style Return Table as seen below.

US Equity Style Return

4/29/2011

 

Assets Class Symbols 04/27
Trend
Score
04/20
Trend
Score
Direction
Russell Smallcap Growth IWO 14.01% 13.06% ^
Russell Midcap Growth IWP 12.57% 11.91% ^
Russell Smallcap Index IWM 11.05% 9.92% ^
Russell Midcap Indedx IWR 10.9% 10.15% ^
Russell Midcap Value IWS 9.84% 9.03% ^
Russell Largecap Growth IWF 9.25% 8.24% ^
Russell Smallcap Value IWN 8.56% 7.26% ^
Russell Largecap Index IWB 8.52% 7.38% ^
Russell Largecap Value IWD 8.15% 6.96% ^

The trend score is defined as the average of 1,4,13,26 and 52 week total returns (including dividend reinvested).

US Large Cap Blend

4/29/2011

Description Symbol 1 Yr 3 Yr 5 Yr Avg. Volume(K) 1 Yr Sharpe
SPDR S&P 500 SPY 15.13% 1.42% 2.64% 169,849 83.79%
iShares S&P 500 Index IVV 14.66% 2.18% 2.45% 2,992 79.99%
Vanguard Total Stock Market VTI 17.54% 3.35% 3.48% 1,833 92.09%
iShares Russell 1000 IWB 15.83% 2.66% 2.84% 886 86.04%
Rydex S&P Equal Weight RSP 18.18% 5.79% 4.44% 1,115 94.46%
iShares S&P 100 OEF 12.47% 0.94% 2.15% 883 67.2%
Vanguard Large Cap VV 15.8% 2.78% 3.54% 223 85.55%
Schwab U.S. Large Cap SCHX 15.95% NA NA 297 87.97%
Vanguard S&P 500 VOO NA NA NA 311 NA

 

Among US Large Cap Blend ETFs the Ryder S&P Equal Weight ETF (RSP) and the Vanguard Total Stock Market ETF (VTI) have performed the strongest, offering one-year returns of 18.18% and 17.54% respectively. The ETF in the sector with the highest level of average volume, the SPDR S&P 500 Index, returned 15.13% in the past year, near the middle of the pack.

While US Large Cap Blend ETFs have provided investors with strong returns in recent periods, many in the market believe that the sector is due for a retraction based on overheated valuations. For the time being, investors will likely find better returns elsewhere.

Symbols: SPY, IVV, VTI, IWB, RSP, OEF, VV, SCHX, VOO, IWO, IWP, IWM, IWR, IWS, IWF, IWN, IWB, IWD


Tickers: (NYSE: SPY) (NYSE: IVV) (NYSE: VTI) (NYSE: IWB)(NYSE: RSP)(NYSE: OEF)(NYSE: VV)(NYSE: SCHX)(NYSE: VOO) (NYSE: IWO) (NYSE: IWP) (NYSE: IWM) (NYSE: IWR) (NYSE: IWS) (NYSE: IWF) (NYSE: IWN) (NYSE: IWB) (NYSE: IWD)

 

Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.



comments 0   Share/Bookmark
Register for FREE No Credit Card Required
Or Start FREE 30-day trial now >>

Members enjoy Free features

  • Customize and follow a diversified strategic allocation portfolio for your 401k, IRA and brokerage investments within minutes
  • Receive monthly or quarterly re-balance emails
  • Enter funds and percentages in your portfolio, see its historical performance and receive ongoing rebalance emails
  • Real time fund ranking and selection for your plans
  • Quality retirement investing newsletter emails
  • Fund ranking and selection for your plans

Tens of thousands of users have signed up!

Join Now (Free)
No Credit Card Required

User names can only consist of alphabetic and
numeric characters.(eg: 0-9a-zA-Z)
I agree to the Terms of use

Login With Facebook:

Get Started Now. It's Free!

Get portfolio suggestions for your
401k plan or brokerage accounts

Powered by MyPlanIQ
You have created an account on MyPlanIQ.com by using this email "", please login MyPlanIQ account or reset your password.