{"id":534,"date":"2011-01-31T23:26:21","date_gmt":"2011-02-01T04:26:21","guid":{"rendered":"https:\/\/stockherd.com\/blog\/?p=534"},"modified":"2021-12-28T12:49:29","modified_gmt":"2021-12-28T17:49:29","slug":"growth-vs-value-and-large-vs-small","status":"publish","type":"post","link":"https:\/\/stockherd.com\/blog\/?p=534","title":{"rendered":"Growth vs. Value &#038; Large-cap vs. Small-cap"},"content":{"rendered":"<p>In an asset allocation portfolio, do value stocks outperform growth stocks?\u00c2\u00a0 Do small-cap stocks outperform large-cap stocks?\u00c2\u00a0 The answer to both questions is yes, for most periods.<\/p>\n<p>The two graphs are based on data contained in the\u00a0<a href=\"http:\/\/sites.google.com\/site\/bogleheadinvestor\/files\/Backtest-Portfolio-returns-rev10b.xls?attredirects=0\">Backtesting Portfolio Spreadsheet<\/a> prepared by a member of the <a href=\"http:\/\/www.bogleheads.org\/forum\/viewtopic.php?t=2520\">Bogleheads Forum<\/a>. The spreadsheet provides returns for various asset class combinations for periods between 1972-2010.\u00c2\u00a0 The charts compare returns for six asset classes over five different time periods ending December 31, 2010.<\/p>\n<p><a href=\"https:\/\/stockherd.com\/blog\/wp-content\/uploads\/2011\/01\/large_cap_returns_2010.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-537\" title=\"Large-cap Returns through 2010\" src=\"https:\/\/stockherd.com\/blog\/wp-content\/uploads\/2011\/01\/large_cap_returns_2010.png\" alt=\"\" width=\"520\" height=\"537\" \/><\/a><\/p>\n<p>For each period except the most recent 5-year period, large-cap value stocks outperformed large-cap growth stocks. \u00a0Similar results can be seen for small-cap stocks.<\/p>\n<p><a href=\"https:\/\/stockherd.com\/blog\/wp-content\/uploads\/2011\/01\/small_cap_returns_2010.png\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-full wp-image-538\" title=\"Small-cap Stock Returns through 2010\" src=\"https:\/\/stockherd.com\/blog\/wp-content\/uploads\/2011\/01\/small_cap_returns_2010.png\" alt=\"\" width=\"521\" height=\"536\" \/><\/a><\/p>\n<p>The two graphs also show that small-cap stocks outperformed large-cap stocks of the same type (i.e., value, blend, or growth) for all of the periods except one.<\/p>\n<p><strong>Data sources:<\/strong><\/p>\n<div class='one_half'>\n\t\t\t\t\t<p>LCV = US Large Value:\nFama and French 1972-1978\nRussell 1000 Value Index 1979-1992\nVanguard Value Index Fund 1993-2010<\/p>\n<p>LCB = US Large Blend:\nS&amp;P 500: Standard &amp; Poors 1972-1976\nVanguard 500 Index Fund 1977-2010<\/p>\n<p>LCG = US Large Growth:\nFama and French 1972-1978\nRussell 1000 Growth Index 1979-1992\nVanguard Growth Index Fund 1993-2010\n\t\t\t\t<\/div>\n<div class='one_half et_column_last'>\n\t\t\t\t\tSCV = US Small Value:\nIbbotson 1972-1978\nRussell 2000 Value Index 1979-1998\nVanguard Small Cap Value Index Fund 1999-2010<\/p>\n<p>SCB = US Small Blend:\nIbbotson 1972-1978\nRussell 2000 Index 1979-1991\nVanguard Small Cap Index Fund 1992-2010<\/p>\n<p>SCG = US Small Growth:\nIbbotson 1972\u00e2\u20ac\u201c1978\nRussell 2000 Growth Index 1979-1998\nVanguard Small Cap Growth Index Fund (VISGX) 1999-2010\n\t\t\t\t<\/div><div class='clear'><\/div>\n","protected":false},"excerpt":{"rendered":"<p>In an asset allocation portfolio, do value stocks outperform growth stocks?\u00c2\u00a0 Do small-cap stocks outperform large-cap stocks?\u00c2\u00a0 The answer to both questions is yes, for most periods. The two graphs are based on data contained in the\u00a0Backtesting Portfolio Spreadsheet prepared by a member of the Bogleheads Forum. The spreadsheet provides returns for various asset class [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"","_et_pb_old_content":"","_et_gb_content_width":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[18],"tags":[],"class_list":["post-534","post","type-post","status-publish","format-standard","hentry","category-asset-allocation"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=534"}],"version-history":[{"count":20,"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/534\/revisions"}],"predecessor-version":[{"id":1099,"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=\/wp\/v2\/posts\/534\/revisions\/1099"}],"wp:attachment":[{"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/stockherd.com\/blog\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}