E + R = O: A Formula for Success
An enduring investment philosophy with investment discipline can increase the odds of having a positive financial experience.
US SMALL VALUE MINUS US LARGE GROWTH
Monthly Return Differences, March 2020–March 2021
Value stocks, or those with low relative prices, have outperformed higher-priced growth stocks in the US over the long term. Similarly, the stocks of smaller companies have fared better than the stocks of bigger ones in the US. But the performance of these stocks has varied at different points in history.
History hasn’t presented a reliable way to predict when small value stocks will outperform. Swings can be swift and sharp. Staying invested is the best way to capture expected gains over the long term.
1. Small value minus large growth is the monthly return difference of the Fama/French US Small Value Research Index minus the Fama/French US Large Growth Research Index.
2. Cumulative outperformance over period.
3. Index data begin July 1, 1926.
IMPORTANT DISCLOSURES
This report was first published by Dimensional Fund Advisors LP.
Past performance is no guarantee of future results. Indices are not available for direct investment; therefore, their performance does not reflect the expenses associated with the management of an actual portfolio.
Note: From July 1, 1926, through March 31, 2021, the Fama/French US Value Research Index outperformed the Fama/French US Growth Research Index by 2.84 percentage points on an annualized basis.
The Fama/French US Small Cap Research Index outperformed the Fama/French US Large Cap Research Index by 1.83 percentage points on an annualized basis over that period.
Fama/French US Value Research Index: Provided by Fama/French from CRSP securities data. Includes the lower 30% in price-to-book of NYSE securities (plus NYSE Amex equivalents since July 1962 and Nasdaq equivalents since 1973).
Shore Point Advisors is an investment adviser located in Brielle, New Jersey. Shore Point Advisors is registered with the Securities and Exchange Commission (SEC). Registration of an investment adviser does not imply any specific level of skill or training and does not constitute an endorsement of the firm by the Commission. Shore Point Advisors only transacts business in states in which it is properly registered or is excluded or exempted from registration. Insurance products and services are offered through JCL Financial, LLC (“JCL”). Shore Point Advisors and JCL are affiliated entities.
An enduring investment philosophy with investment discipline can increase the odds of having a positive financial experience.
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