Monthly Market Data - July 2025

Domestic equities were positive, hard assets mixed, and the yield curve shifted upward

Asset Class Returns

Major Asset Class Returns for the Month Ending July 31, 2025

• Major asset classes were mixed in July. Domestic equities were positive while International Developed equities were negative. Emerging Market equities posted small gains.

• Rising yields pressured Fixed Income securities (more below). The broad bond ETF declined by 0.26%.

• The two physical assets had diverging returns. Commodities produced the best return in July with Gold up 1% and the price of Oil up over 6%. Real Estate had the second-worst return with a 0.97% decline.

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 July 31, 2025

• Seven of the eight asset classes have a positive trailing twelve month return. Of those seven, four have returns over 10%.

• U.S. Large Cap stocks (+16.2%) and Emerging Market stocks (+16.1%) are the top performing asset classes over the past year with near identical returns.

• International Developed (+12.3%) and U.S. Mid Cap (+11.9%) make up the third and fourth best trailing twelve month returns.

• U.S. Small Cap stocks are the lone asset class with a negative return.

  
  

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

• All equity styles were positive in July. The only real variation between styles occurred within Large Cap stocks. Large Cap Growth outperformed Large Cap Value.

• Large Cap Value was the lowest performing style in July.

• All styles within Mid and Small Caps had similar returns, ranging from 1.7% to 2.0%.

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Interest Rates

• The yield curve shifted higher along every maturity except for the 3M duration where it was unchanged from last month. The largest shifts occurred at the 2YR maturity which increased 22 basis points.

• Medium-term maturities (1YR to 7YR) continue to have yields below short-term maturities.

• The 1M yield ended the month just shy of 4.5% (4.49%).

• The 2Y/10Y spread narrowed by 9 basis points from the end of June due to the 10YR yield rising less than the 2YR yield.

• The 2Y/10Y spread is 63 basis points wider than the negative spread from one year ago.

  
  

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.