Financial Services Sector Lags Market
Though the broad-market Russell indexes showed growth in the second quarter of 2004, the financial services sector dropped more than 2%.Frank Russell Company, publisher of the 21 Russell Indexes, says that its family of indexes was up slightly in the second quarter of 2004, showing 1.3% growth since the first quarter. The Russell 1000 index, comprised of the top 1000 companies on American stock exchanges in terms of market capitalization, grew 1.4% in the second quarter, outperforming the small-cap Russell 2000 index, which was up just 0.47%. The financial services sector dropped more than 2%, though, slowing the overall growth of the market. During the second quarter, several indexes that topped the first quarter performance chart dropped to the bottom, including financial services and the Russell 2000 Value Index.
More than $1.4 trillion in assets are benchmarked to Russell indexes, and more than $364 billion is invested in passive index funds that use them as a model; a 100% increase since 1999.