Growth and value stocks could get a boost from Russell’s rebalancing

A bullish move could be in store for both value and growth in the second half of the year.

VettaFi’s Todd Rosenbluth thinks value stocks, which have been lagging the market, could get a boost from one of the biggest Wall Street events of the year: the FTSE Russell’s annual rebalancing.

“It’s worth paying attention to value,” the company’s head of research told CNBC’s “ETF Edge” this week. ‘It feels like… [for a] For a long time, growth has outperformed value.”

On Friday, the Russell indexes underwent their annual reconstruction to reflect changes in the market as companies grow and change. The iShares Russell 1000 Growth ETF is up 20% so far this year, while the iShares Russell 1000 Value ETF is up almost 6%.

“We think there is room for both growth and value across a broader portfolio. It’s just that people are more inclined towards growth in the second half of the year,” he added. “There have been periods where the pendulum has swung back in favor of value.”

Fiona Bassett, CEO of FTSE Russell, said on “ETF Edge” that the indices are built to reflect the nature of the market.

“One of the benefits of the Russell franchise overall is our ability to get the word out in different ways,” she said. “So for those people who want concentrated exposure to value or growth, we have the indices available to do that.”

FactSet reports that the top three Russell 1000 Growth ETF exist as of May 31 Microsoft, Apple And Nvidia. Meanwhile, the top holdings of the Russell 1000 Value ETF are Berkshire Hathaway, JPMorgan Chase And ExxonMobil.