Quarterly Market Data - June 2025

Bothe domestic and non-U.S. equities were strong; hard assets struggled

Asset Class Returns

Major Asset Class Returns for the 3 Months Ending June 30, 2025

• Global equities had strong performances in the second quarter of 2025. Non-U.S. market edged out U.S. Large Cap for the top two spots.

• U.S. Mid and U.S. Small Cap had the lowest equity returns at just under 8.50% each.

• Fixed Income generated a small positive return in the three-month period. Interest rate moves at the short and long durations (see below) hindered bond returns.

• Hard assets were lower. The Real Estate class declined 1.15%. A broad basket of commodities declined 3.21%.  

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 June 30, 2025

• The recent surge in non-U.S. equities has propelled International Developed to the top performing asset class over the last twelve months. Emerging Market equites (+16.3%) are the second-best asset class over the past year.

• U.S. Mid Cap returned 15.0% and U.S. Large Cap returned 14.9%.

• Commodities are the lone asset class with a negative twelve-month return.

• Fixed Income returned 6.1% in the past year.

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

• Growth handily beat Value across the capitalization spectrum. The Growth/Value spread was most prevalent in the Large and Mid Cap universes.

• At the broad index level, Large Cap was the top performer, with Mid and Small cap indices posting similar returns.

• Large Cap Value experienced the lowest returns while Mid Cap Growth realized the greatest return.

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Interest Rates

• The yield curve shifted higher at the long end and at the 3M and 6M maturities compared to the end of March.

• The shortest rate (1M) is ten basis points lower than it was three months ago.

• The middle of the yield curve is lower from 1YR to 7YR. The 10YR yield is essentially unchanged from last quarter.

• Yields are substantially lower than one year ago at the front end of the curve. The 20YR and 30YR maturities ended the quarter with higher yields than last quarter and last year.

• The 2Y/10Y spread expanded by 18 basis points from the end of March. The increase is primarily due to the drop in the 2YR yield, as the 10YR is only one basis point higher.

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.