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DOWN THE STRETCH, GROWTH IS MAKING A RUN FOR THE ROSES

When it comes to major style factors that have historically driven portfolio returns, Growth appears set to take its spot in the Winner's Circle for 2024.

Major investing style factors include stocks discounted to their fundamentals (Value), financially-sound companies (Quality), size (Small Caps), stable, lower-risk stocks (Low Volatility), and stocks exhibiting upward price trends (Momentum).

To this, let's add in as separate factors Mid- and Large-Caps, high-growth companies (Growth), and those stocks that provide income (Dividends).

With just two trading days to go in the year, the SPDR S&P 500 ETF Trust SPY.P is up 25.2% year-to-date (YTD).

Here is a graphic showing the YTD factor percentage changes as well as how they have performed vs the SPY (factor/SPY ratio change):

Thanks to a December surge, Growth SPYG.K is out front with a 37.8% YTD advance. This has it track for its best year ever using LSEG data starting in late 2000.

After leading the pack for much of the year, Momentum MTUM.K has lost its edge toward year end. That's said, it's still up 34.1%.

Growth and Momentum are the only groups outperforming the SPY this year.

Large caps SCHX.K are up 25.2% YTD, putting them in-line with the SPY.

Now for the underperformers:

2023's winner, Quality QUAL.K, is up 22.7%.

Mid Caps IJH.P are up 13%, Low Volatility SPLV.K is up 12.4%, Value SPYV.K and Small Caps IWM.P are both 10.8% higher.

Dividends NOBL.Z are the biggest laggard with a 5.3% advance.

Of note, both Mid- and Small- Caps are on pace for their worst year vs the SPY ever (using LSEG data starting in late 2000).

(Terence Gabriel)

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FOR MONDAY'S EARLIER LIVE MARKETS POSTS:

ELECTIONS, RATE CUTS AND ECONOMIC DIVERGENCE: A LOOK BACK AT 2024 - CLICK HERE

WILL THE WHITE HOUSE IMPOSE A UNIVERSAL TARIFF? - CLICK HERE

STOXX SUBDUED, TECH AND HEALTHCARE WEIGH - CLICK HERE

EUROPE BEFORE THE BELL: SET TO FALL ON FINAL FULL TRADING DAY OF 2024 - CLICK HERE

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)