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S&P vs Nasdaq vs Russell in 2023: Getting More Selective With Your US Stock Index Strategy

S&P vs Nasdaq vs Russell in 2023: Getting More Selective With Your US Stock Index Strategy

Aired On

Mar / 08 / 2023
6:00 pm - SGT
Tariq Dennison
CME Group

In 2022, the S&P 500 declined by over 20% while the tech-heavy Nasdaq-100 declined by over 34%, and the small-cap Russell 2000 declined between these two finishing the year down 23%. Many saw the 2022 Nasdaq underperformance as a long-expected reversal of the growth benchmark's faster rise in the wake of the COVID-19 pandemic, and in the decade following the 2008-2009 financial crisis, both of which saw historically low interest rates drive higher and higher valuation multiples on growth stocks relative to value stocks.

So far in 2023, rallies in these three measures have many traders wondering if the bear market is over or whether this is just another “bear market rally”. With US equities covering 60% of the whole world’s stock market value, it is worth examining how best to position your portfolio’s exposure to this spread between value and growth, and between large and small stocks, both shorter term and longer term.

In this practical webinar, Tariq Dennison explains the S&P 500 vs Nasdaq 100 vs Russell 2000 components and fundamental metrics, and how to fine tune your exposure to them using micro-sized futures and option contracts.

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This material is from CME Group and is being posted with its permission. The views expressed in this material are solely those of the author and/or CME Group and Interactive Brokers is not endorsing or recommending any investment or trading discussed in the material. This material is not and should not be construed as an offer to buy or sell any security. It should not be construed as research or investment advice or a recommendation to buy, sell or hold any security or commodity. This material does not and is not intended to take into account the particular financial conditions, investment objectives or requirements of individual customers. Before acting on this material, you should consider whether it is suitable for your particular circumstances and, as necessary, seek professional advice.

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Trading on margin is only for experienced investors with high risk tolerance. You may lose more than your initial investment. For additional information regarding margin loan rates, see ibkr.com/interest

Disclosure: Options Trading

Options involve risk and are not suitable for all investors. Multiple leg strategies, including spreads, will incur multiple commission charges. For more information read the "Characteristics and Risks of Standardized Options" also known as the options disclosure document (ODD) or visit ibkr.com/occ

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Futures are not suitable for all investors. The amount you may lose may be greater than your initial investment. Before trading futures, please read the CFTC Risk Disclosure. A copy and additional information are available at ibkr.com.

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