S&P 500 Growth vs S&P 500 Value Total Return

Are growth stocks or value stocks outperforming right now?

Today’s chart answers that question by presenting the total return trend for both the S&P 500 Growth Index and S&P 500 Value Index.

Today’s chart illustrates that, on a total return basis, growth stocks (orange line) have outperformed value stocks (blue line) since 2005.

More recently, while value has made new highs, growth has begun to rally.

S&P 500 Growth vs S&P 500 Value Total Return

What is considered a growth stock?

Generally, a growth stock is a share in a company that has above average earnings growth and has the potential to grow faster than the overall economy.

What is considered a value stock?

Generally, a value stock is a share in a company that is appears to be undervalued based on some fundamental criteria such as earnings, dividends, revenue, book value, etc.

What is the difference between large-cap and small-cap?

Market cap categories break down as follows: mega-cap ($100 billion plus), large-cap ($10 billion-$100 billion), mid-cap ($2 billion-$10 billion), small-cap ($300 million-$2 billion), and micro-cap (less than $300 million).

What is the S&P 500?

The S&P 500, short for Standard & Poor’s 500, is a market capitalization weighted stock index of 500 large-cap U.S. companies.