Tacoma, Wash., February 1, 2005 - The technology and autos & transportation sectors drove the U.S. equity markets into negative territory in January, according to month-end performance figures for Russellâs family of 21 indexes. The first month of 2005 also saw large-cap stocks outperform small caps for the second consecutive month, though both the large-cap Russell 1000Â® Index (-2.5%) and small-cap Russell 2000Â® Index (-4.2%) reflected negative returns for January.
"Large-cap stocks were unable to maintain the positive results witnessed at the end of the year, but they did manage to expand on the modest lead they established over small caps in December," said Steve Swartley, manager research analyst at Russell. "The decline in the Russell 2000 was broadly felt as 11 of the 12 sectors in the index posted a negative return, including an 8.4% loss for technology. The results for large-cap stocks were a bit more promising as three sectors in the Russell 1000 turned in a positive return."
Overall, each of Russell's U.S. benchmarks reflected a negative month for investors. The broad market Russell 3000Â® Index gave up 2.7% and each of the other 20 indexes, which track various market segments, lost similar amountsThe best performing index, the Russell Top 200Â® Value Index, dipped 1.5%, while the worst performing index, the Russell 2000Â® Growth Index, shed 4.5%.
In the Russell 1000, a bakerâs dozen of stocks in the technology sector lost more than 20% for the month. In the Russell 2000, Tower Automotive Inc. (-66.1%) was the worst performing company, while Lexar Media Inc. (-51%) was the lowest performing tech stock.
This year marks the 20th anniversary of Russell indexes. Russell employs its indexes to objectively evaluate investment managers for multi-manager funds and other investment services. More than $2 trillion in assets are benchmarked to Russell indexes, and more than $450 billion is invested in passive index funds that use them as a model; a 100% increase since 1999.