Monthly Market Data - February 2025

Global equities and real assets were mixed; Fixed Income benefitted from lower rates

Asset Class Returns

Major Asset Class Returns for the 1 Month Ending February 28, 2025

• Domestic equities were among the worst performing asset classes in February. U.S. Small Cap stocks had the largest decline, followed by U.S Mid Cap. U.S. Large Cap had the smallest decline within domestic equities.

• Real Estate was the best performing asset class, helped, in part, by declining interest rates (see more below).

• International Developed and Emerging Market equities were both positive as investors favored non-U.S stocks during the month.

• Commodities were broadly negative. The price of Oil declined while Gold increased 0.5%.

  
  

The table below depicts the same information as above and shows which representative security is used for each asset class.

Source: Jackson Creek Investment Advisors; S&P Global

Major Asset Class Returns for the Twelve Months Ending February 28, 2025

• All eight major asset classes have a positive trailing month return.

• Despite a negative return in February, U.S. Large Cap equities (+17.7%) remain the leading asset class over the past twelve months.

• Real Estate (+14.4%) is now the second-best performing asset class during the previous twelve months.

• Fixed Income gained 3.5% since the end of February 2024. Commodities are up 5.1% in the last twelve months.

1 Month U.S. Index Returns with Growth & Value Styles

• Core, Growth, and Value styles were mostly negative across the capitalization spectrum. The lone positive style was Large Cap Value, which rose 0.4%.

• Small Cap Growth stocks lagged the most as equity investors shied away from riskier securities during February.

• Value outperformed Growth in the Large, Mid, and Small Cap categories.

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Interest Rates

• The yield curve flattened relative to last month.

• Interest rates declined for all maturities greater than three months.

• Shorter-dated rates are significantly lower than last year. The US1M yield ended the month at 4.38% compared to 5.53% at the end of February 2024.

• The positive 2/10 spread narrowed by ten basis points from last month. This is a result of the 10YR yield falling more than the 2YR yield.

• The 2/10 spread is now 0.25%. Last year the spread was -0.39%.

Disclaimer - this is not to be construed as investment advice or a recommendation to buy or sell any security. This is not meant to be indicative of any specific portfolio returns. Please see full disclosure on main blog page.