Is There Growth in Your Value?
Let's start with the part everyone already knows
Record Market Concentration
Are Indices Changing?
The 2025 reconstitution
This is not without precedent
The Russell indices aren't the only ones encountering these dynamics
So, what's the problem?
Historically, investors have generally agreed...
While some of the Mag 7 may have, directionally, become more value-oriented based...
The dividend yield of Mag 7 constituents was ~100 basis points lower
Why Should Active Investors Care?
Looking Under the Hood
On March 31, 2025, (the quarter-end prior to the Russell reconstitution)...
It was our initial assumption...
Our goal is not to disparage competing approaches
Diversification with High Current Income & Growth of Income
Even putting concentration risk and potential style drift aside...
Disclosure
Definitions