Style Box ETF Performance: Growth Recovers Against Value Investing

⁢ Updated May 25, 2025

Large-cap growth strategies, particularly those tracking iShares style-box ETFs, dominated market returns in 2023 and 2024. However, value investing demonstrated greater relative strength in 2023 before falling⁣ behind in 2024. The first quarter ​of 2025 saw a value resurgence, but growth has since regained momentum.

Notably, small ⁤and mid-cap value‌ stocks have ‌struggled, delivering poor returns over the past 10 to 15 ‌years. Despite this, these styles attracted considerable investment following the ‌1982-2000 ⁢bull market.

While large-cap growth has recently surged, the large-cap space is now largely overbought. Investors should monitor underperforming sectors,as they​ often rebound when bull markets end.

What’s next

As the current bull market⁢ ages, keeping an eye on underperforming assets may ⁣prove ⁢beneficial. Historically, assets that are uncorrelated or non-correlated during ⁤bull runs tend to outperform when market conditions shift.