Equity Market Commentary Q3
Cautious optimism as market trades up despite uncertainty
David Polak
Equity investment director
Mike Pollgreen
Equity investment director
Key takeaways for the quarter ended September 30, 2025
- Investors should consider maintaining a balanced equity allocation with geographic diversity, exposure to dividend payers and an approach to growth that isn't overly concentrated.
- Global markets continued their rally in the third quarter of 2025, led by large-cap tech, despite uncertainty in trade, several geopolitical conflicts and signs of slowing in the U.S. economy.
- International equities continued gains from the first half of the year, remaining well ahead of U.S. stocks on a year-to-date basis.
Global equity markets continued to rally in the third quarter, driven by strong earnings growth, artificial intelligence (AI) enthusiasm, and the resurgence of large-cap technology stocks despite some signs of slowing in the U.S. economy.
As a result, valuations have pushed to levels not seen since the dot-com bubble, supported by ongoing profitability and earnings growth — much of it driven by AI-related investments — so have yet to become a major headwind to sentiment with investments. The high valuations are also largely unique to the U.S., with other parts of the world trading closer to historical averages and many emerging markets countries trading at a discount.
Sources: International Monetary Fund, FactSet. NTM: Rolling next 12 months. Real GDP growth as of 10/3/25, with latest available data as of 7/31/25. Year-to-date returns and NTM P/E are as of 9/30/25. Hungary: MSCI Hungary. South Korea: MSCI Korea. South Africa: MSCI South Africa. Chile: MSCI Chile. Mexico: MSCI Mexico. Brazil: MSCI Brazil. Spain: MSCI Spain. Italy: MSCI Italy. Germany: MSCI Germany. Finland: MSCI Finland U.S.: MSCI USA.
Amid this backdrop, the Federal Reserve again finds itself in the spotlight following its first rate cut of the year in September, with the market expecting two more cuts by year-end. As investors eagerly await a decrease in the cost of capital, a paradoxical dynamic is playing out in the stock market: Markets rally on bad news, which increases the chances of a rate cut, while retreating on good news that decreases that probability. Some cracks are emerging — an uptick in inflation, a slowing job market and companies hesitant to make major decisions due to heightened uncertainty.
Questions continue to swirl around the issue of trade. While the Trump Administration has provided some clarity on the topic, including favorable deals with some countries in exchange for lower tariff rates, it also faces legal challenges that could undermine the emergency powers central to its overall strategy. New tariffs were announced in late September on timber, furniture and pharmaceuticals as well as medium- and heavy-duty trucks.
Overall, the S&P 500 Index rose 8.1% in the third quarter, narrowly outperforming international equities, represented by the MSCI ACWI ex USA Index, which gained 6.9%. Year-to-date, international stocks are leading, with the ACWI ex USA up 26.0% versus the S&P’s 14.8%. A weakening dollar — down 9.8% year-to-date — has contributed to this shift. Emerging markets were particularly strong, up 10.6% for the quarter and 27.5% for the year.
In the U.S., growth stocks continued to outperform value, with the Russell 1000 Growth Index up 10.5% in Q3 and 17.2% year-to-date, compared to the Russell 1000 Value Index, which rose 5.3% in Q3 and 11.7% for the year.
Internationally, value stocks outpaced growth: The MSCI ACWI ex USA Value Index gained 8.1% in Q3 and 29.6% year-to-date, while the MSCI ACWI ex USA Growth Index rose 5.7% and 22.5%, respectively. From a sector perspective, health care is the only negative performer year-to-date in both the S&P and ACWI ex USA.
Looking ahead, attention will remain on the Fed, as investors have grown used to a swift response to economic softening since the global financial crisis. While investors will continue to watch for the Fed’s response to fiscal and economic factors, political developments like tariff headlines may increasingly shape market sentiment and inflation dynamics. It will be crucial to watch how a U.S. market with historically high valuations — largely driven by the Mag 7 and AI enthusiasm — continues to evolve.
Equity-focused strategies
During the third quarter, all of our equity-focused funds advanced, with absolute returns ranging from 10.1% for American Funds Developing World Growth and Income Fund (DWGI) to 2.4% for CGIE — Capital Group International Equity ETF. While most funds lagged on a relative basis, both CGXU — Capital Group International Focus Equity ETF and The New Economy Fund (NEF) outpaced their benchmarks and beat their Morningstar category averages (2.13% and 4.97%, respectively).
Year-to-date relative results were mixed against the funds’ benchmarks but strong against peers, with 88% (28 of 32) ranking in the first or second quartile.1
U.S.-focused strategies
Third quarter
Growth continued to outpace value in the U.S. as a continuation of the “everything AI” trade that began in the second quarter. Therefore, our fund results in the most recent quarter look similar to the quarter before; capital appreciation funds produced the strongest absolute returns while our growth and income fund returns were softer.
CGGR — Capital Group Growth ETF was the only U.S. strategy to largely keep pace with its benchmark in the quarter, advancing 8.0% and trailing the benchmark S&P 500 Index by about 10 basis points (bps). The fund benefited from larger positions in select consumer discretionary and communication services companies. The Growth Fund of America (GFA) and AMCAP Fund both trailed the S&P 500, despite advancing roughly 7% and 6% in the quarter, respectively. CGGG — Capital Group U.S. Large Growth ETF returned 8.3% and topped the category average (7.6%), but lagged its benchmark, the Russell 1000 Growth Index, by 219 bps.
Our U.S. growth and income funds all advanced in the quarter, led by CGUS — Capital Group Core Equity ETF, which posted a quarterly return of 7.3%. While the fund enjoyed strong stock selection in the consumer staples and tech sectors, it trailed the index, in part due to investments in the materials sector that fell in the quarter.
CGDV — Capital Group Dividend Value ETF returned 6.8% in the quarter, beating the average peer return in its Morningstar category (5.52%). While the fund did well against its Large Value Morningstar category peers, it trailed the S&P 500 by 134 bps due to its lower-than-index exposure to the growth-oriented companies that drove market results this period.
Results elsewhere in the U.S. growth and income suite were softer. American Mutual Fund and Washington Mutual Investors Fund were challenged in the quarter due to their more conservative nature and focus on dividend payers that lagged in a growth-led environment.
Year-to-date 2025
Year-to-date equity market results in the U.S. look similar to the third quarter. The Russell 1000 Growth Index returned 17.2% year-to-date, compared to 11.7% for the Russell 1000 Value Index and 14.8% for the broader S&P 500 Index.
Our funds faired well against peers in the year-to-date period. Among our U.S. equity-focused strategies, 80% (8 of 10 funds) ranked in the first quartile against peers. That number increases to 90% if we include funds ranked above median.
CGGR led results for our U.S. growth suite, returning 18.2% and beating the S&P 500 by 333 bps. GFA held up similarly well, returning 18.1% thanks to better investment decisions, primarily in industrials and tech sectors.
The strongest results in the period came from our growth and income suite, reflecting the benefits of our flexible approach to investing that benefited in both value-led and growth-led environments this year. CGDV returned 20.3% in the period and beat its Morningstar category average (11.3%). Aerospace and defense companies helped CGDV outpace the S&P 500 by 558 bps, as did investments in select tobacco and consumer discretionary companies.
Funds also did well against peers elsewhere in the growth and income suite. Fundamental Investors returned 19.2%, while The Investment Company of America returned 18.0%, beating the average return among their U.S. Large Blend peers (13.1%).
International and global strategies
Third quarter
While growth outpaced in the U.S. for the second quarter in a row, international markets continued to be dominated by value. The best results abroad came from emerging markets where the MSCI EM Index returned 10.6% and outpaced the MSCI EAFE Index by nearly 600 bps, helped by a rebound in China.
As such, our funds with a focus on emerging markets posted the best absolute returns. DWGI returned 10.1%, the highest across our international and global suite, and beat its peer group average (8.8%), despite trailing the MSCI EM by 50 bps.
CGXU and EUPAC Fund did well against peers, returning 9.2% and 6.2% compared to the category average of 2.1%. CGXU returned 9.2% in the quarter and was the only international fund to produce excess returns against its benchmark (over 200 bps vs. the MSCI ACWI ex USA). The fund benefited from exposure to copper miners, which lagged earlier in the year but rebounded as copper prices were boosted by two significant and unexpected operational failures at major mines.
NEF led our global fund results, returning 9.0% in the quarter and outpacing the MSCI ACWI Index by 135 bps (and the S&P 500 by 85 bps), helped by large investments in U.S. semiconductor companies. Other global funds advanced but did not beat their benchmarks, although both CGGO — Capital Group Global Growth Equity ETF and New Perspective Fund (NPF) beat the average peer return in their Morningstar category (7.0%, 6.2%, and 5.0%, respectively).
Year-to-date 2025
International markets have continued to dominate in the year-to-date period, with both developed and emerging markets outpacing the U.S., as measured by the MSCI EAFE (25.1% YTD), MSCI EM (27.5%), and S&P 500 (14.8%), respectively. In developed markets, the value index has nearly doubled growth index returns, while in emerging markets, the growth/value dynamic is more evenly matched, with a slight advantage to growth.
In this environment, our emerging markets strategies posted the best relative and absolute results across all equity-focused funds (including our U.S. offerings). CGNG — Capital Group New Geography Equity ETF, which shares an EM-focused global strategy with New World Fund, posted the best relative returns in the period. A much larger emphasis on emerging markets than its global benchmark helped the fund advance 24.7% so far this year, outpacing the MSCI ACWI by more than 600 bps.
DWGI led our entire equity-focused suite in absolute terms, returning 30.2%. The fund also outpaced the MSCI EM by 264 bps. While the fund focuses on quality, income-producing companies, it does have a tendency to lean more toward the growth style, and that helped it produce excess returns in what has been a broadly growth-led environment for emerging markets.
Additionally, CGDG — Capital Group Dividend Growers ETF, NEF, NPF, and Capital World Growth and Income Fund are all outpacing their benchmarks.
Relative results for our developed market international funds are mixed, but all the international funds have done well against their peer groups. CGIC — Capital Group International Core Equity ETF, which is based on the same strategy as International Growth and Income Fund, has advanced 29.7% so far this year, outpacing its benchmark by 372 bps and beating its peer group average (25.0%). EUPAC and CGXU have each advanced more than 20% year-to-date and beat their peer group average (18.9%), despite trailing their benchmark.
Small- and midcap strategies
Small-cap indexes outpaced their large-cap counterparts at home and abroad in the third quarter, though they continue to trail large caps in the year-to-date period.
Our global and U.S.-oriented small- and mid-cap funds, SMALLCAP World Fund and CGMM — Capital Group U.S. Small and Mid Cap ETF advanced 3.7% and 5.6% in the quarter, but both lagged their benchmarks. CGMM did well against competitors, which returned an average of 5.2%.
Balanced and equity-income strategies
Balanced funds delivered strong absolute returns in the third quarter, supported by gains across global equities and fixed income. Year-to-date, all three funds remain ahead of their respective benchmarks by more than 1.3%, underscoring strong security selection despite relative challenges in Q3. During the quarter, American Balanced Fund (AMBAL) modestly trailed its blended benchmark, while CGBL — Capital Group Core Balanced ETF lagged more materially due to security selection headwinds; American Funds Global Balanced Fund (GBAL) also posted positive absolute returns but underperformed on a relative basis.
Within equities, results were pressured by pullbacks in top health care holdings — particularly biotech and pharmaceuticals — and by lower relative exposure to select Mag 7 names such as Apple and Tesla during their Q3 rally. Contributors to results included strong selection in information technology, especially semiconductor stocks benefiting from continued AI-driven demand, and U.S. balanced funds gained from an outsized position in gold miners as gold surged 16.6% during the quarter. As of 9/30/2025, equity allocations stood at 65.0% for AMBAL, 62.8% for CGBL, and 62.9% for GBAL, modestly aiding results as equities broadly outpaced bonds.
Both The Income Fund of America (IFA) and Capital Income Builder (CIB) posted gains in the third quarter but trailed their blended benchmarks and peers amid a continued rally in growth-oriented companies over dividend equities. Despite near-term softness, year-to-date results remain strong, with both funds ahead of their respective benchmarks by more than 200 bps and ahead of their peer group averages (13.2% and 15.6%, respectively). Importantly, both strategies continue to meet their income objectives, delivering 12-month yields of 3.1% for CIB (F-2) and 3.8% for IFA (F-2) as of 9/30/2025, well above market levels.
During the quarter, underweights in information technology, communication services, and consumer discretionary detracted as these growth-oriented sectors rallied. Offsetting some of these headwinds, both funds benefited from financials — especially banks, which gained amid stable economic growth—and from strong selection in health care, particularly among service providers. As of 9/30/2025, equity allocations remained above benchmark at 69.7% for IFA and 76.9% for CIB, modestly aiding results as equities outpaced bonds.
Longer term perspective
While investors appear cautiously optimistic for now, it is possible economic data could deteriorate, or the market could be less sanguine in digesting economic shocks or headlines. Regardless, our funds will seek superior returns and resilience for our investors.
A longer term perspective helps to illustrate the lasting successes of our strategies across market environments. Among our equity-focused mutual funds with at least a 10-year track record, 80% (16 of 20 mutual funds) ranked in the top two quartiles against peers. In that time, 70% of the funds (14 of 20 mutual funds) experienced less downside capture than their primary prospectus benchmark. As a result, these 14 equity-focused mutual funds produced competitive returns during strong market periods and provided a smoother ride for our investors by declining less than their benchmarks during periods of market turmoil.
1CGGG, CGMM and CGVV do not have full year-to-date results.
Mutual fund and ETF rankings are based on total return. ETF returns are based on net asset value (NAV) and those are used to determine the rankings.
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1 year
Fund Total Return Percentile Peers Morningstar Category AMCAP Fund 16.9% 72nd 1073 Large Growth American Balanced Fund 14.7% 4th 480 Moderate Allocation American Funds Developing World Growth and Income Fund 20.9% 17th 752 Diversified Emerging Markets American Funds Global Balanced Fund 9.3% 69th 409 Global Moderate Allocation American Funds Global Insight Fund 15.2% 42nd 323 Global Large-Stock Blend American Funds International Vantage Fund 13.0% 35th 391 Foreign Large Growth American Mutual Fund 11.8% 28th 1138 Large Value CGBL — Capital Group Core Balanced ETF 14.2% 5th 480 Moderate Allocation CGCV — Capital Group Conservative Equity ETF 12.1% 25th 1138 Large Value CGDG — Capital Group Dividend Growers ETF 15.1% 44th 323 Global Large-Stock Blend CGDV — Capital Group Dividend Value ETF 17.0% 4th 1138 Large Value CGGE — Capital Group Global Equity ETF 16.2% 34th 323 Global Large-Stock Blend CGGG — Capital Group U.S. Large Growth ETF - - - Large Growth CGGO — Capital Group Global Growth Equity ETF 15.0% 40th 310 Global Large-Stock Growth CGGR — Capital Group Growth ETF 26.5% 17th 1073 Large Growth CGIC — Capital Group International Core Equity ETF 20.4% 15th 679 Foreign Large Blend CGIE — Capital Group International Equity ETF 12.6% 38th 391 Foreign Large Growth CGMM — Capital Group US Small and Mid Cap ETF - - - Mid-Cap Blend CGNG — Capital Group New Geography Equity ETF 16.5% 51st 752 Diversified Emerging Markets CGUS — Capital Group Core Equity ETF 16.6% 41st 1317 Large Blend CGVV — Capital Group U.S. Large Value ETF - - - Large Blend CGXU — Capital Group International Focus Equity ETF 11.3% 45th 391 Foreign Large Growth Capital Income Builder 13.6% 23rd 176 Global Moderately Aggressive Allocation Capital World Growth and Income Fund 17.5% 20th 323 Global Large-Stock Blend EUPAC Fund 14.7% 23rd 391 Foreign Large Growth Fundamental Investors 21.3% 7th 1317 Large Blend International Growth and Income Fund 19.0% 22nd 679 Foreign Large Blend New Perspective Fund 17.5% 33rd 310 Global Large-Stock Growth New World Fund 15.1% 61st 752 Diversified Emerging Markets SMALLCAP World Fund 6.9% 54th 172 Global Small/Mid Stock The Growth Fund of America 23.5% 34th 1073 Large Growth The Income Fund of America 12.6% 15th 409 Global Moderate Allocation The Investment Company of America 20.7% 9th 1317 Large Blend The New Economy Fund 23.6% 17th 310 Global Large-Stock Growth Washington Mutual Investors Fund 14.9% 8th 1138 Large Value -
5 years
Fund Total Return Percentile Peers Morningstar Category AMCAP Fund 12.7% 67th 954 Large Growth American Balanced Fund 10.6% 16th 439 Moderate Allocation American Funds Developing World Growth and Income Fund 6.5% 62nd 614 Diversified Emerging Markets American Funds Global Balanced Fund 7.5% 58th 387 Global Moderate Allocation American Funds Global Insight Fund 11.1% 69th 296 Global Large-Stock Blend American Funds International Vantage Fund 8.2% 28th 338 Foreign Large Growth American Mutual Fund 13.4% 65th 1025 Large Value CGBL — Capital Group Core Balanced ETF - - - Moderate Allocation CGCV — Capital Group Conservative Equity ETF - - - Large Value CGDG — Capital Group Dividend Growers ETF - - - Global Large-Stock Blend CGDV — Capital Group Dividend Value ETF - - - Large Value CGGE — Capital Group Global Equity ETF - - - Global Large-Stock Blend CGGG — Capital Group U.S. Large Growth ETF - - - Large Growth CGGO — Capital Group Global Growth Equity ETF - - - Global Large-Stock Growth CGGR — Capital Group Growth ETF - - - Large Growth CGIC — Capital Group International Core Equity ETF - - - Foreign Large Blend CGIE — Capital Group International Equity ETF - - - Foreign Large Growth CGMM — Capital Group US Small and Mid Cap ETF - - - Mid-Cap Blend CGNG — Capital Group New Geography Equity ETF - - - Diversified Emerging Markets CGUS — Capital Group Core Equity ETF - - - Large Blend CGVV — Capital Group U.S. Large Value ETF - - - Large Value CGXU — Capital Group International Focus Equity ETF - - - Foreign Large Growth Capital Income Builder 10.7% 29th 165 Global Moderately Aggressive Allocation Capital World Growth and Income Fund 12.6% 48th 296 Global Large-Stock Blend EUPAC Fund 7.4% 37th 338 Foreign Large Growth Fundamental Investors 16.7% 15th 1134 Large Blend International Growth and Income Fund 11.3% 31st 611 Foreign Large Blend New Perspective Fund 12.2% 22nd 265 Global Large-Stock Growth New World Fund 8.4% 35th 614 Diversified Emerging Markets SMALLCAP World Fund 5.3% 69th 149 Global Small/Mid Stock The Growth Fund of America 15.0% 38th 954 Large Growth The Income Fund of America 10.5% 12th 387 Global Moderate Allocation The Investment Company of America 17.6% 8th 1134 Large Blend The New Economy Fund 12.3% 21st 265 Global Large-Stock Growth Washington Mutual Investors Fund 16.2% 18th 1025 Large Value -
10 years
Fund Total Return Percentile Peers Morningstar Category AMCAP Fund 13.2% 88th 766 Large Growth American Balanced Fund 10.2% 11th 363 Moderate Allocation American Funds Developing World Growth and Income Fund 6.7% 73rd 457 Diversified Emerging Markets American Funds Global Balanced Fund 7.1% 48th 314 Global Moderate Allocation American Funds Global Insight Fund 11.3% 37th 205 Global Large-Stock Blend American Funds International Vantage Fund 8.8% 33rd 224 Foreign Large Growth American Mutual Fund 11.9% 23rd 842 Large Value CGBL — Capital Group Core Balanced ETF - - - Moderate Allocation CGCV — Capital Group Conservative Equity ETF - - - Large Value CGDG — Capital Group Dividend Growers ETF - - - Global Large-Stock Blend CGDV — Capital Group Dividend Value ETF - - - Large Value CGGE — Capital Group Global Equity ETF - - - Global Large-Stock Blend CGGG — Capital Group U.S. Large Growth ETF - - - Large Growth CGGO — Capital Group Global Growth Equity ETF - - - Global Large-Stock Growth CGGR — Capital Group Growth ETF - - - Large Growth CGIC — Capital Group International Core Equity ETF - - - Foreign Large Blend CGIE — Capital Group International Equity ETF - - - Foreign Large Growth CGMM — Capital Group US Small and Mid Cap ETF - - - Mid-Cap Blend CGNG — Capital Group New Geography Equity ETF - - - Diversified Emerging Markets CGUS — Capital Group Core Equity ETF - - - Large Blend CGVV — Capital Group U.S. Large Value ETF - - - Large Value CGXU — Capital Group International Focus Equity ETF - - - Foreign Large Growth Capital Income Builder 8.0% 76th 134 Global Moderately Aggressive Allocation Capital World Growth and Income Fund 11.1% 42nd 205 Global Large-Stock Blend EUPAC Fund 8.2% 48th 224 Foreign Large Growth Fundamental Investors 14.7% 30th 876 Large Blend International Growth and Income Fund 8.1% 46th 469 Foreign Large Blend New Perspective Fund 13.4% 23rd 178 Global Large-Stock Growth New World Fund 9.8% 10th 457 Diversified Emerging Markets SMALLCAP World Fund 9.2% 31st 92 Global Small/Mid Stock The Growth Fund of America 16.1% 51st 766 Large Growth The Income Fund of America 9.1% 3rd 314 Global Moderate Allocation The Investment Company of America 14.7% 31st 876 Large Blend The New Economy Fund 13.9% 17th 178 Global Large-Stock Growth Washington Mutual Investors Fund 13.9% 3rd 842 Large Value
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Source: Capital Group, based on Morningstar data as of Sept. 30, 2025. The Morningstar rankings do not reflect the effects of sales charges, account fees or taxes. When applicable, results reflect fee waivers and/or expense reimbursements, without which they would have been lower. Please see capitalgroup.com for more information. Past results are no guarantee of results in future periods. While American Funds mutual funds class F-2 shares do not include fees for advisor compensation and service provider payments, the share classes represented in the Morningstar category have varying fee structures and can include these and other fees and charges, resulting in higher expenses.
Fund results and analysis
Index comparisons:
The 20 equity-focused American Funds and their primary benchmarks in the results are as follows, unless otherwise indicated: AMCAP Fund®, American Mutual Fund®, Fundamental Investors®, The Growth Fund of America®, The Investment Company of America® and Washington Mutual Investors Fund (S&P 500 Index); American Balanced Fund® (60% S&P 500 Index and 40% Bloomberg U.S. Aggregate Index); American Funds® Global Balanced Fund (60% MSCI All Country World Index and 40% Bloomberg Global Aggregate Index); Capital Income Builder® (70%/30% MSCI All Country World Index/Bloomberg U.S. Aggregate Index); The Income Fund of America® (65%/35% S&P 500 Index/Bloomberg U.S. Aggregate Index); Capital World Growth and Income Fund®, The New Economy Fund®, New Perspective Fund® and New World Fund® (MSCI All Country World Index); American Funds® Developing World Growth and Income Fund (MSCI Emerging Markets Index); EuroPacific Growth Fund® and International Growth and Income Fund (MSCI All Country World ex USA Index); SMALLCAP World Fund® (MSCI All Country World Small Cap Index); American Funds® International Vantage Fund (MSCI EAFE [Europe, Australasia, Far East] Index); American Funds® Global Insight Fund (MSCI World Index).
The 15 Capital Group equity-focused ETFs and their primary benchmarks in the results are as follows: CGDG — Capital Group Dividend Growers ETF, CGGO — Capital Group Global Growth Equity ETF, CGIC — Capital Group International Core Equity ETF, CGNG — Capital Group New Geography Equity ETF (MSCI All Country World Index); CGIE — Capital Group International Equity ETF (MSCI EAFE [Europe, Australasia, Far East] Index); CGUS — Capital Group Core Equity ETF, CGGR — Capital Group Growth ETF, CGDV — Capital Group Dividend Value ETF, CGCV — Capital Group Conservative Equity ETF (S&P 500 Index); CGXU — Capital Group International Focus Equity ETF, CGIC — Capital Group International Core Equity ETF (MSCI All Country World ex USA Index); CGGE — Capital Group Global Equity ETF (MSCI World Index); CGBL — Capital Group Core Balanced ETF (60%/40% S&P 500 Index/Bloomberg U.S. Aggregate Index); CGGG — Capital Group U.S. Large Growth ETF (Russell 1000 Growth Index); CGMM — Capital Group U.S. Small and Mid Cap ETF (Russell 2500 Index); CGVV — Capital Group U.S. Large Value ETF (Russell 1000 Value Index).
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Effective June 1, 2025, EuroPacific Growth Fund is now EUPAC Fund.
60%/40% MSCI All Country World Index/Bloomberg Global Aggregate Index blends the MSCI All Country World Index with the Bloomberg Global Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. The blend is rebalanced monthly. MSCI All Country World Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed- and emerging-markets country indexes. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. Bloomberg Global Aggregate Index represents the global investment-grade fixed income markets. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
60%/40% S&P 500 Index/Bloomberg U.S. Aggregate Index blends the S&P 500 with the Bloomberg U.S. Aggregate Index by weighting their cumulative total returns at 60% and 40%, respectively. The blend is rebalanced monthly. S&P 500 Index is a market- capitalization-weighted index based on the results of approximately 500 widely held common stocks. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
65%/35% S&P 500 Index/Bloomberg U.S. Aggregate Index blends the S&P 500 with the Bloomberg U.S. Aggregate Index by weighting their cumulative total returns at 65% and 35%, respectively. The blend is rebalanced monthly. S&P 500 Index is a market-capitalization-weighted index based on the results of approximately 500 widely held common stocks. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
70%/30% MSCI All Country World Index/Bloomberg U.S. Aggregate Index blends the MSCI All Country World Index with the Bloomberg U.S. Aggregate Index by weighting their total returns at 70% and 30%, respectively. The blend is rebalanced monthly. MSCI All Country World Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed- and emerging-markets country indexes. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. Bloomberg U.S. Aggregate Index represents the U.S. investment-grade fixed-rate bond market. The indexes are unmanaged, and results include reinvested distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI All Country World ex USA Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, excluding the United States. The index consists of more than 40 developed- and emerging-markets country indexes. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI All Country World Small Cap Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results of smaller capitalization companies in both developed and emerging markets. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI ACWI ex USA Growth Index captures large and mid cap securities exhibiting overall growth style characteristics across 22 Developed Markets (DM) countries and 24 Emerging Markets (EM) countries. The growth investment style characteristics for index construction are defined using five variables: long-term forward EPS growth rate, short-term forward EPS growth rate, current internal growth rate and long-term historical EPS growth trend and long-term historical sales per share growth trend.
MSCI ACWI ex USA Value Index captures large and mid cap securities exhibiting overall value style characteristics across 22 Developed and 24 Emerging Markets countries. The value investment style characteristics for index construction are defined using three variables: book value to price, 12-month forward earnings to price and dividend yield
MSCI All Country World Index (ACWI) is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global developed and emerging markets, consisting of more than 40 developed- and emerging-markets country indexes.
MSCI Brazil Index is designed to measure the performance of the large- and midcap segments of the Brazilian market.
MSCI Chile Index is designed to measure the performance of the large- and midcap segments of the Chilean market.
MSCI EAFE® (Europe, Australasia, Far East) Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure developed equity market results, excluding the United States and Canada. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI Emerging Markets Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results in the global emerging markets, consisting of more than 20 emerging-markets country indexes. Results reflect dividends gross of withholding taxes through December 31, 2000, and dividends net of withholding taxes thereafter. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
MSCI Finland Index is designed to measure the performance of the large and midcap segments of the Finnish equity market.
MSCI Germany Index is designed to measure the performance of the large and midcap segments of the German market.
MSCI Hungary Index is designed to measure the performance of the large- and midcap segments of the Hungarian market.
MSCI Italy Index is designed to measure the performance of the large and midcap segments of the Italian market.
MSCI Korea Index is designed to measure the performance of the large- and midcap segments of the South Korean market.
MSCI Mexico Index is designed to measure the performance of the large- and midcap segments of the Mexican market.
MSCI Spain Index is designed to measure the performance of the large and midcap segments of the Spanish market.
MSCI South Africa Index is designed to measure the performance of the large- and midcap segments of the South African market.
MSCI USA Index is a free-float-adjusted, market-capitalization-weighted index that is designed to measure the U.S. portion of the world market.
MSCI World Index is a free-float-adjusted market-capitalization-weighted index that is designed to measure equity market results of developed markets. The index consists of more than 20 developed market country indexes, including the United States. Results reflect dividends net of withholding taxes. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
Russell 1000® Growth Index measures the performance of the large-cap growth segment of the US equity universe. It includes those Russell 1000 companies with relatively higher price-to-book ratios, higher I/B/E/S forecast medium term (2 year) growth and higher sales per share historical growth (5 years). The Russell 1000® Growth Index is constructed to provide a comprehensive and unbiased barometer for the large-cap growth segment. The index is completely reconstituted annually to ensure new and growing equities are included and that the represented companies continue to reflect growth characteristics. S&P 500 Index is a market capitalization-weighted index based on the average weighted results of approximately 500 widely held common stocks.
Russell 1000 Value Index is a market capitalization-weighted index that represents the large-cap value segment of the U.S. equity market and includes stocks from the Russell 1000 Index that have lower price-to-book ratios and lower expected growth values. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
Russell 2500 Index measures the results of the small to midcap segment of the US equity universe, commonly referred to as "smid" cap. The Russell 2500 Index is a subset of the Russell 3000 Index. It includes approximately 2500 of the smallest securities based on a combination of their market cap and current index membership. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index.
S&P 500 Index is a market-capitalization-weighted index based on the results of approximately 500 widely held common stocks. This index is unmanaged, and its results include reinvested dividends and/or distributions but do not reflect the effect of sales charges, commissions, account fees, expenses or U.S. federal income taxes.
Down-market capture ratio is a statistical measure of an investment manager's overall performance in down-markets.
Magnificent 7 (Mag 7) refers to seven companies (Microsoft, Apple, Alphabet, Amazon, NVIDIA, Meta and Tesla) whose stocks dominated the S&P 500 Index in 2023.