uploads///GROWTH INDEX EXPO TO IT

Total Returns and Sector Exposure for Growth Indexes

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May. 21 2018, Published 9:59 a.m. ET

Total returns and sector exposure

 

If we dig into the S&P 500 and the S&P Growth indexes, we can see that they have the highest exposure to information technology (or IT). The S&P 500 Growth index generated a three-year and five-year annualized return of 13.2% and 15.2%, respectively. These returns compare to the S&P 500 (SPY) at 10.7% and 13% for the same timespan, respectively. The S&P 500 Growth index generated YTD (year-to-date) return of 5.5%, compared to the S&P 500 at 1.5%. The S&P 500 Growth has 41% exposure to information technology, compared to the S&P 500 at 24.8%. Apple (AAPL), Microsoft Corp (MSFT), Amazon.com (AMZN), Facebook (FB), and Alphabet (GOOGL) form the top five constituents of the index.

 

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S&P 1000 Growth and S&P 1000 Pure Growth

The S&P 1000 Growth and S&P 1000 Pure Growth indexes have three-year annualized returns of 11.6% and 10.2%, respectively. They have five-year annualized returns of 13.1% and 12.9%, respectively. They have YTD returns of 4.3% and 4.5%, respectively.

The S&P 1000 Growth index has 21.3% exposure to IT. Abiomed (ABMD), Broadridge Financial Solutions (BR), Teleflex (TFX), NVR (NVR), and Domino’s Pizza (DPZ) form the top five constituents of the index.

The S&P 1000 Pure Growth index has 24.7% exposure to IT. Enanta Pharmaceuticals (ENTA), Abiomed (ABMD), Qualys (QLYS), BioTelemetry (BEAT), and Supernus Pharmaceuticals (SUPN) form the top five constituents of the index.

Growth stock ETFs

The Vanguard Growth ETF (VUG) has 37% exposure to technology. It has a PE (price-to-earnings ratio) of 28.7x and a YTD return of 4.9%. The Vanguard Dividend Appreciation ETF (VIG) has 29% exposure to industrials. It has a PE of 23.5x and a YTD return of -0.9%.

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