Key points
- Trade at higher P/E multiples.
- Sensitive to rising interest rates.
- Dominated by technology sector.
Example
If real yields fall, the value of distant profits rises most, so growth shares have tended to beat value shares in those periods.
In history
Growth sharply underperformed value in 2022 when rates jumped, then outperformed in 2023–2024 as AI optimism lifted mega-cap tech.
Related terms