Factor returns were generally underwhelming in the fourth quarter. Value had the largest absolute return. Investors were more concerned about valuation levels as Value was positive. The most attractively valued stocks outperformed the least attractive by 8.26%, on average. This was the first quarter Value was positive since Q1. Due to poor performance in Q2 and Q3, Value is negative for the full year. Value’s 2025 return was -1.43%.

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.

Domestic equities were among the worst performing asset classes in February. U.S. Small Cap stocks had the largest decline, followed by ...