The Russell 1000 ETF’s performance in the first quarter is a testament to shutting out the noise, staying disciplined, and following the plan set by your Financial Advisor. By April 8th, the R1000 ETF had plunged over -15% as investor panic around macro events sent many of the mega-cap stocks that dominate the index tumbling. From April 8th to May 9th, the date we wrote this commentary, the benchmark exploded higher, rising nearly 14%. For context, that’s an annualized return of 363%
Timing markets is a futile endeavor. We acknowledge many asset allocation firms have explained that elevated valuations in US large caps may lead to muted long-term expected returns.
We do not disagree. Yet our research suggests that the prospects for benchmark aware strategies with high active share like ours may provide significant return advantages for long-horizon investors.
L2 Large Cap Core Trade Commentary – May Q1 2025
Table of contents
When
May 21, 2025
Who
Matthew Malgari
Dr. Sanjeev Bhojraj
Nathan Przybylo
ASSET CLASS COMMENTS:
The Russell 1000 ETF’s performance in the first quarter is a testament to shutting out the noise, staying disciplined, and following the plan set by your Financial Advisor. By April 8th, the R1000 ETF had plunged over -15% as investor panic around macro events sent many of the mega-cap stocks that dominate the index tumbling. From April 8th to May 9th, the date we wrote this commentary, the benchmark exploded higher, rising nearly 14%. For context, that’s an annualized return of 363%
Timing markets is a futile endeavor. We acknowledge many asset allocation firms have explained that elevated valuations in US large caps may lead to muted long-term expected returns.
We do not disagree. Yet our research suggests that the prospects for benchmark aware strategies with high active share like ours may provide significant return advantages for long-horizon investors.