What’s in a Name: Growth vs. Value

Investors slice and dice the stock market in a myriad of ways. With the advent of the ETFs and the rising popularity of factor/smart beta investing, it’s easier than ever to access or avoid very specific portions of the equity market. That said, many investors still start with the primary criteria of size or market capitalization (large-, mid-, and small-cap stocks) and style (value, core/blend, growth). For mutual funds and ETFs, this is in large part thanks to the ubiquity of the Morningstar Style Box, a 3x3 box grid that was originally created to classify and group mutual funds. The x-axis is style (from value to growth) and market-cap is on the y-axis (from small to large).