Equity Style Analysis: Growth vs. Value

A post-pandemic tug-of-war

Growth & Value competing for dominance

• The global investment environment has fundamentally changed. Since the start of 2021, growth and value stocks have been battling for
  dominance in the new market regime—as seen below, there have been two intense value rallies only to be quelled by economic optimism
  and a reversion to growth.
• Since 2021, cumulative returns have favored value 64% of the time, but growth returns have edged ahead in the most recent rally.¹

Outperformance of U.S. Value vs. Growth since 2021
1/1/2021 – 12/31/2024

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1 As of December 31, 2024.

2 Since December 29, 1978 the annualized total return of the Russell 1000® Growth benchmark is 11.70%, and the annualized total return of the Russell 1000® Value benchmark is 11.42%.


Past performance is not a guarantee of future results.


Investing involves risk, including possible loss of principal. Diversification does not ensure a profit or protect against a loss.


This does not constitute, nor should this be perceived, as investment advice or an investment recommendation of any particular sector, industry, or security. 


There is no guarantee that these investment strategies will work under all market conditions, and each investor should evaluate their ability to invest for a long term, especially during periods of downturns in the market.


Growth stocks may be more sensitive to market movements because their prices tend to reflect future investor expectations rather than just current profits. Growth stocks may underperform value stocks during given periods.


Value stocks may perform differently from the market as a whole and may be undervalued by the market for a long period of time.


Investments in international securities are subject to certain risks of overseas investing including currency fluctuations and changes in political and economic conditions, which could result in significant market fluctuations. These risks are magnified in emerging markets. 


The Fund is subject to the risks associated with investments in emerging markets, such as erratic earnings patterns, economic and political instability, changing exchange controls, limitations on repatriation of foreign capital and changes in local governmental attitudes toward private investment, possibly leading to nationalization or confiscation of investor assets.


Market prices of stocks may fall rapidly or unpredictably due to a variety of economic or political factors, market conditions, disasters or public health issues, or in response to events that affect particular industries or companies.


The Russell 1000® Growth Index measures the performance of those Russell 1000® companies with higher price/book ratios and higher forecasted growth values. The stocks are also members of the Russell 3000® Growth Index.


The Russell 1000® Value Index measures the performance of those Russell 1000® companies with lower price/book ratios and lower forecasted growth values. The stocks are also members of the Russell 3000® Value Index.


The Russell 3000® Value Index measures the performance of the broad value segment of the U.S. equity universe. It includes those Russell 3000® companies with lower price-to-book ratios and lower forecasted growth values.


The Russell 3000® Growth Index measures the performance of those Russell 3000® Index companies with higher price-to-book ratios and higher forecasted growth values.


The MSCI EAFE Value Index (Europe, Australasia, Far East) captures large and mid cap securities exhibiting overall value style characteristics across Developed Markets countries* around the world, excluding the U.S. and Canada. Please go to msci.com for the most current list of countries represented by the index.


The MSCI EAFE Growth Index (Europe, Australasia, Far East) captures large and mid cap securities exhibiting overall growth style characteristics across Developed Markets countries* around the world, excluding the U.S. and Canada. Please go to msci.com for the most current list of countries represented by the index.


The MSCI Emerging Markets Value Index captures large and mid cap securities exhibiting overall value style characteristics across 24 Emerging Markets (EM) countries.* Please go to msci.com for the most current list of countries represented by the index.


The MSCI Emerging Markets Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 24 Emerging Markets (EM) countries.* Please go to msci.com for the most current list of countries represented by the index.


The indices are unmanaged, are not available for direct investment and do not incur expenses.


AMG Funds LLC is a subsidiary and U.S. distribution arm of Affiliated Managers Group, Inc. (NYSE: AMG).


AMG Distributors, Inc., a member of FINRA/SIPC


Not FDIC Insured | May Lose Value | Not Bank Guaranteed