Buffett ApprenticeVONE: The Russell 1000 Growth ETF
The Russell 1000 Index is a long-standing market index. In fact, it is a subset of the Russell 3000 Index and is market-cap weighted.
This means the largest companies have the highest percentage in the index and exert a greater influence on performance compared to the smallest index members.
The Russell 1000 Index ranks all stocks included in the Russell 3000 by market capitalization and determines the market capitalization cutoff point for the top 1,000 stocks. This cutoff is the primary criterion for index eligibility.
It can be said that the Russell 1000 Index covers the top 90% of U.S. companies by market capitalization, essentially reflecting the overall trend of the U.S. stock market.
Therefore, over the past year, as the U.S. stock market has been in a sustained uptrend, the Russell 1000 Index has also maintained growth.
From the current U.S. market perspective, following the release of the U.S. CPI data on the evening of April 10, 2024, and supported by CPI and employment data, the Federal Reserve reiterated its stance on interest rates, confirming that rate cuts will occur within the year but not in the near term.
Judging from the bond market's reaction after the release of the Federal Reserve Minutes, interest rates quickly rose, and traders have significantly lowered their expectations for a rate cut in June. More traders now believe the first rate cut this year may occur in September or even November.
Thus, while the U.S. has not yet entered a rate-cutting cycle in the long term, many economies in Japan and Europe have already begun raising rates. The U.S. economy is expected to improve further, and as the global economic leader, the U.S. stock market may continue its upward trend.
At the current level of the U.S. stock market, even the most conservative investors would hesitate to say a correction is imminent.
Amid a strong economic rebound, the U.S. maintains its technological leadership and economic advantage.
As a result, VONE, the ETF tracking the Russell 1000 Index, which holds the largest U.S. companies by market cap, has maintained solid growth.
Among the many ETFs tracking the Russell 1000 Index, VONE has its unique characteristics. On the evening of April 10, U.S. stocks plunged again due to delayed rate-cut expectations, and VONE also declined accordingly.
However, in the long run, this won’t fundamentally damage the index. Once the dust settles, the end of bad news could mark the beginning of good news.$Vanguard Russell 1000(VONE.US)
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