
As of late February 2025, market dynamics are shifting, with value stocks outperforming growth stocks. The Value Stock ETF ($VTV) has increased by 4% since the start of the year, contrasting with a 3% decline in the Nasdaq-100 ($NDX), which is heavily weighted towards growth stocks. Notably, the broad market ETF (VTI) is underperforming the Tech Sector ETF (XLK) by 1.04%. This trend comes after a prolonged period where the ratio of growth to value stocks reached its highest since March 2000, marking the peak of the dot-com bubble. Additionally, high beta stocks are facing challenges, with a decline exceeding 10% and a notable drop from the 99th percentile to the 7th percentile in relative performance. Analysts indicate that this represents a shift from momentum to beta reversion.
High Beta down over 10% https://t.co/dFisTXIVaz
In early December we warned that High Beta was likely to weaken vs Low Beta. We've gone from the 99th percentile then to the 7th today. It's been more of a beta than momentum reversion. $SPX https://t.co/MLmQWXdeOz
Factor relative performance. High Beta hitting a new 1-year low, growth rolled over, value and size trying to show improvement. https://t.co/L6Uw5dVF2N



