During the market doldrums near the end of 2018, investors were typically better off discarding the growth factor and seeking refuge under an umbrella of value as a defensive play. In 2019, there continues to be separate camps of analysts who say value is in vogue while others say the growth party isn’t over just yet–thus far, the Direxion Russell 1000 Growth Over Value ETF (NYSEArca: RWGV) has been leading the Direxion Russell 1000 Value Over Growth ETF (NYSEArca: RWVG).
RWGV is up about 7 percent year-to-date while RWVG is 3.6 percent higher.
RWGV seeks investment results that track the Russell 1000® Growth/Value 150/50 Net Spread Index. RWGV invests at least 80 percent of its net assets in securities that comprise the Long Component of the index or shares of ETFs on the Long Component of the index. The index measures the performance of a portfolio that has 150 percent long exposure to the Russell 1000® Growth Index and 50 percent short exposure to the Russell 1000® Value Index.
On the other hand, RWVG tracks the Russell 1000® Value/Growth 150/50 Net Spread Index. RWVG invests at least 80 percent of its net assets in securities that comprise the Long Component of the index or shares of ETFs on the Long Component of the index. The index measures the performance of a portfolio that has 150 percent long exposure to the Russell 1000® Value Index and 50 percent short exposure to the Russell 1000® Growth Index.
Trade Deal Boosting Value and Growth
Regardless of whether value is outpacing growth or vice versa, both will definitely benefit from a U.S.-China trade deal. U.S. equities rose on Friday following more trade deal optimism as the Dow Jones Industrial Average gained over 300 points.
In a press conference at the White House, U.S. President Donald Trump said he will be meeting with Chinese President Xi Jingping in Washington next week. The meeting comes as a U.S. trade delegation led by Treasury Secretary Steven Mnuchin and U.S. Trade Representative Robert Lighthizer were in in Beijing this week.