Equity Market Commentary Q2
U.S. equities rebound despite lingering uncertainty
David Polak
Equity investment director
Mike Pollgreen
Investment product manager
Key takeaways for the quarter ended June 30, 2025
- Investors should consider maintaining a balanced allocation with geographic diversity, exposure to dividend payers and an approach to growth that isn't overly concentrated.
- The second quarter of 2025 saw the S&P 500 Index rebound from an early selloff to soar to new all-time highs, driven by growth stocks, thanks to a softened approach to tariffs by the Trump administration.
- International equities expanded upon first-quarter gains to remain well ahead of U.S. stocks on a year-to-date basis.
All's well that ends well could be the theme for equities in the second quarter: Early in the period, the S&P 500 suffered a decline of more than 15% before reversing and notching a new record high as June came to a close.
The second quarter began with Liberation Day on April 2, when President Trump announced sweeping global tariffs that spooked investors worried about higher inflation, a slowdown in trade and a hit to corporate profitability. While stocks rebounded following a pause on those tariffs, uncertainty lingers as the market digests mixed signals on trade deal negotiations and which tariff rates the Trump administration wants to impose long term.
As tariffs and trade negotiations dominated headlines, a broadening opportunity set quietly took hold, marked by strong returns beyond U.S. borders. International markets are outpacing the U.S. by double digits in 2025 as measured by the MSCI ACWI ex USA Index and the S&P 500.
Drilling into the numbers, the S&P 500 advanced by a 10.94% return in the quarter and is now up 6.2% on the year. U.S. growth stocks staged a swift comeback in the second quarter after lagging their value counterparts in the first quarter. The Russell 1000 Growth Index advanced 17.8% in the quarter, while the Russell 1000 Value Index was up 3.8% in the quarter. Year-to-date, the growth and value indexes are within 9 basis points (bps) of each other.
International equities represented by the MSCI ACWI ex USA Index were up 12%, once again outpacing the U.S., albeit by less of a margin than in Q1. Emerging markets, as represented by the MSCI EM Index, continued a strong start to 2025, up 12% in the second quarter and 15.3% on the year. In a sign of the broadening globally, many major indices were up double digits in the quarter.
Sources: Capital Group, Morningstar.
The risk-on dynamic was driven by investors eager to focus on the positive — Trump's newfound sensitivity to market sentiment, a cooling of geopolitical tension with Iran, evidence of economic resiliency — amid a broadening investment opportunity set. Now, we wait to see whether the third quarter will produce a continuation of this upward momentum.
Caution and discretion is still warranted. The deadlines for tariff pauses continue to shift, trade negotiations between the U.S. and many global counterparts remain testy and the future of conflicts in Ukraine and the Middle East are still unclear.
Other unknowns include questions around Federal Reserve policy amid growing pressure against Chair Jerome Powell by President Trump, who is clamoring for rate hikes.
Capital Group equity-focused funds and ETFs update
During the second quarter, all of our equity-focused funds advanced, with absolute returns ranging from 18.8% for CGGR Capital Group Growth ETF to 5.8% for CGCV Capital Group Conservative Equity ETF. The funds also excelled in relative terms, with 79% outpacing their benchmark in the period (26 of 33).
Year-to-date results are even better, with 94% of funds (30 of 32)1 ranking in the first or second quartile against Morningstar peers. Year-to-date, 91% of funds (29 of 32) beat their benchmark.
U.S.-focused funds
Q2
A value-led first quarter gave way to a growth-led second quarter, and our fund results reflected this dynamic. Capital appreciation funds led the suite, while our more income-oriented funds did well against peers but produced softer absolute returns.
The strongest absolute and relative returns came from our growth funds, led by Growth Fund of America (709 bps in excess returns over the S&P 500, 19 bps over the Russell 1000 Growth) and CGGR (787 bps in excess returns over the S&P 500, 97 bps over the Russell 1000 Growth). These funds benefited from tech’s hard rebound after Liberation Day lows.
Our U.S. growth and income funds fared well, particularly against their peer groups, with six of seven funds ranking in the top quartile versus peers. The Investment Company of America beat its benchmark and ranked in the seventh percentile against peers, as the fund had a greater emphasis on a select group of tech companies that rebounded in the quarter. CGCV focuses on high quality dividend-payers, and due to ineligibility, held less of the growth companies that enjoyed strong returns in the quarter. As a result, the fund lagged its benchmark by the largest margin across all our funds (-511 bps). However, the fund ranked in the 22nd percentile against its peers within the Morningstar Large Value category.
Year-to-date 2025
The first two quarters of the year were markedly different, with growth and value style equities taking turns leading markets. As such, our year-to-date results were led by funds that balanced growth and income objectives and were able to carefully navigate both tumultuous environments.
CGDV Capital Group Dividend Value ETF and Fundamental Investors led our U.S. funds in absolute and relative terms, both up more than 11.50% and leading their benchmark by more than 550 bps. The two funds benefited from their differentiated approaches in positioning and strong security selection, particularly in the information technology, consumer staples and industrials sectors.
U.S. equity funds with more income-oriented objectives, like Washington Mutual Investors Fund and American Mutual Fund, exhibited stronger relative results during the market’s first quarter selloff but lagged in the second quarter rally. Meanwhile, more growth-oriented funds like GFA and CGGR delivered the bulk of their excess returns in the growth-led rebound following Liberation Day. For example, The Growth Fund of America returned 18.0% in the second quarter, making up for lost ground in the first quarter and returning 10.5% year-to-date. The fund ranks in the 13th percentile against peers year-to-date, because its flexible approach to growth allowed the fund to hold up better than peers in Q1, as well as participate in a market recovery to all-time highs
CGUS Capital Group Core Equity ETF produced the softest relative results among our U.S. equity funds, outpacing the S&P 500 Index by 8 bps (6.28% vs. 6.20%). The fund’s larger emphasis on select health care companies weighed on results due to a series of controversies in the sector and regulatory concerns stemming from the Trump administration.
International and global funds
Q2
Internationally, growth led value, but not to the same degree as in the U.S. The MSCI ACWI ex USA Growth Index outpaced the MSCI ACWI ex Value Index by 324 bps. Overall, international equities extended their year-to-date lead over U.S., with the MSCI ACWI ex USA returning 12.0% versus 10.9% in the S&P 500. Our international and global suite of offerings benefited from this market broadening, in addition to strong stock selection. Of our 17 global and international equity funds, 16 outpaced their benchmark in the quarter, doing so by an average of 202 bps.
CGIE Capital Group International Equity ETF led our international funds from an absolute perspective, returning 13.9% and outpacing the MSCI EAFE index by 211 bps. Industrials helped the fund, because the market focused on a push from Germany to spend more on defense and infrastructure. Technology investments also helped amid a global bounce in tech.
The New Economy Fund and New Perspective Fund led our global funds, returning 18.2% and 14.7%, in the quarter and outpaced the MSCI ACWI index by 666 bps and 312 bps, respectively. As markets continued to broaden, investment decisions — primarily within the U.S. but also across the globe — helped generate excess returns. The selection of companies in information technology, consumer discretionary and communication services contributed to relative results in the quarter for both funds.
Year-to-date 2025
International market returns have surged year to date, with the MSCI ACWI ex USA Index returning 17.9% as opposed to just 6.2% for the S&P 500 Index. In this environment, our international funds posted the strongest absolute returns across our equity offerings. Relative results against primary benchmarks are also strong (14 of 17 funds outpaced) and all but two of the funds (CGXU and SCWF) ranked in the first two quartiles against peers.
CGIC Capital Group International Core Equity ETF produced the best results across all our funds, including our U.S. equity funds in absolute terms (21.6%). The fund benefited from an emphasis on European banks, which have been a standout industry group so far this year and remain at a P/E of roughly nine times as of June 30, despite returning about 50% year to date. For context, the S&P 500 banking industry group returned about 15% in the same timeframe and now trades at a P/E of roughly 14 times.
CGXU Capital Group International Focus Equity ETF and EUPAC Fund both produced double digit absolute returns through the first half of the year but remain behind the benchmark (MSCI ACWI ex USA) by 721 bps and 177 bps, respectively. However, results may be turning a corner, as both funds have made up significant ground — more than 550 bps against the benchmark since the tariff pause on April 9. Year to date, the period has been marked by uncertainty, impacting the sectors that are most sensitive to tariff disruptions and recessionary concerns. Investments in professional services fell due to concerns over a potential increase in unemployment, copper miners struggled amid concerns over global demand and select health care investments have faced threats of regulatory change, including Trump administration proposals related to drug pricing. Potential sector-specific tariffs also continue to loom over copper and pharmaceutical companies.
CGDG Capital Group Dividend Growers ETF advanced 15.2% and produced the strongest year-to-date relative results among our global funds (516 bps), primarily due to strong first quarter results when dividend payers were in favor. The fund also benefited year to date from a heavier emphasis on European industrials poised to benefit from increased government spending plans. The fund trailed its benchmark in the second quarter by 177 bps. This is due in part to a lighter footprint on some of the most heavily weighted tech names in the MSCI ACWI Index, many of which were some of the strongest contributors to index results in the quarter but are not eligible for CGDG (due to low or no dividends or having little dividend growth potential).
New World Fund and its ETF equivalent, CGNG Capital Group New Geography Equity ETF, returned 15.5% and 16.0%, respectively, and both outpaced their benchmark by more than 500 bps. Our globally focused emerging markets strategy balanced its investments in companies that did well under a variety of market conditions, including Asian semiconductor companies that exceled during the second quarter and financials from various regions that benefited from the value-led first quarter.
Small and midcaps
Global small caps rebounded in the quarter, with the MSCI ACWI Small Cap Index making up for first quarter losses and climbing into positive territory. U.S. small and midcaps, represented by the Russell 2500 Index, also rose, but lagged their non-U.S. peers. The index remains flat year to date, as smaller domestic companies continue to face concerns surrounding tariffs and higher interest rates.
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, both advanced and outpaced their benchmark (MSCI All Country World Small Cap Index and Russell 2500 Index, respectively) in the quarter. SMALLCAP World Fund ranked in the first quartile against peers for the quarter.
Balanced and equity-income
Balanced funds delivered strong results in the second quarter, supported by gains across global equities and fixed income. U.S.-focused CGBL Capital Group Core Balanced ETF and American Balanced Fund (AMBAL) exceeded their blended benchmarks and ranked in the top quintile among peers. Globally oriented American Funds Global Balanced Fund (GBAL) also achieved positive absolute and relative returns, partially driven by continued strength in international equities amid a 7.0% decline in the U.S. Dollar Index (DXY).
This builds on solid momentum year to date, with all three balanced funds delivering strong positive absolute results and exceeding their respective benchmarks by over 250 bps in the first half of the year. As of June 30, 2025, equity allocations stood at 64.5% for AMBAL, 65.5% for CGBL, and 62.5% for GBAL, modestly supporting results as equities broadly outpaced bonds.
Both equity-income funds, The Income Fund of America (IFA) and Capital Income Builder (CIB) posted gains in the second quarter but trailed their blended benchmarks and peer groups amid a market rotation from dividend to growth-oriented equities. Despite near-term weakness, year-to-date results remain resilient as both funds have outpaced their benchmarks by over 400 basis points and rank in the top quintile of their peer group.
As expected, these income-focused funds remain largely positioned in higher yielding pockets of financials, consumer staples and health care. Non-U.S. exposure was broadly additive, reflecting continued strength in international equities. However, a significantly lower allocation in growth-oriented information technology and consumer discretionary — both of which rebounded sharply — posed a relative drag, especially among key AI-related companies. Within fixed income, IFA’s out-of-benchmark allocation to high yield was a bright spot, as credit outpaced higher quality bonds (investment grade — BBB/Baa and above). As of June 30, 2025, equity allocations remained above their benchmark at 69.0% for IFA and 76.3% for CIB, modestly supporting results as equities outpaced bonds.
Longer term perspective
The first two quarters of the year gave us starkly different market conditions, and we’re pleased with how our equity-focused funds behaved in both scenarios. Whether the risk-on environment of the second quarter continues or we see a return to the cautious, broadening market of the first quarter, we believe our diversified funds will deliver on their objectives.
The past decade of results supports these expectations. Among our equity, equity-income and balanced funds with at least a 10-year track record, 75% (15 of 20 funds) ranked in the top two quartiles against peers. In that time, 75% of the funds (15 of 20 funds) experienced less downside capture than their primary prospectus benchmark. As a result, these 15 funds produced competitive returns during strong market periods and provided a smoother ride for our investors during periods of market turmoil.
1CGMM was incepted 1/14/2025 and does 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 15.8% 46th 1084 Large Growth American Balanced Fund 14.5% 4th 453 Moderate Allocation American Funds Developing World Growth and Income Fund 19.6% 8th 769 Diversified Emerging Markets American Funds Global Balanced Fund 12.5% 26th 461 Global Allocation American Funds Global Insight Fund 16.6% 19th 334 Global Large-Stock Blend American Funds International Vantage Fund 16.9% 40th 388 Foreign Large Growth American Mutual Fund 16.2% 11th 1140 Large Value CGBL Capital Group Core Balanced ETF 14.8% 4th 453 Moderate Allocation CGCV Capital Group Conservative Equity ETF 16.5% 9th 1140 Large Value CGDG Capital Group Dividend Growers ETF 20.8% 5th 334 Global Large Blend CGDV Capital Group Dividend Value ETF 21.6% 1st 1140 Large Value CGGE Capital Group Global Equity ETF 17.3% 14th 334 Global Large-Stock Blend CGGO Capital Group Global Growth Equity ETF 10.0% 71st 338 Global Large-Stock Growth CGGR Capital Group Growth ETF 23.9% 12th 1084 Large Growth CGIC Capital Group International Core Equity ETF 18.8% 40th 693 Foreign Large Blend CGIE Capital Group International Equity ETF 16.4% 44th 388 Foreign Large Blend CGMM Capital Group US Small and Mid Cap ETF - - - Mid-Cap Blend CGNG Capital Group New Geography Equity ETF 15.7% 28th 769 Diversified Emerging Markets CGUS Capital Group Core Equity ETF 15.8% 16th 1354 Large Blend CGXU Capital Group International Focus Equity ETF 7.2% 90th 388 Foreign Large Growth Capital Income Builder 18.7% 6th 197 Global Allocation Capital World Growth and Income Fund 17.2% 14th 334 Global Large-Stock Blend EUPAC Fund 13.7% 52nd 388 Foreign Large Growth Fundamental Investors 20.1% 5th 1354 Large Blend International Growth and Income Fund 18.7% 41st 693 Foreign Large Blend New Perspective Fund 18.0% 23rd 338 Global Large-Stock Growth New World Fund 15.4% 33rd 769 Diversified Emerging Markets SMALLCAP World Fund 9.8% 57th 170 Global Small/Mid Stock The Growth Fund of America 21.6% 14th 1084 Large Growth The Income Fund of America 17.7% 2nd 461 Moderately Aggressive Allocation The Investment Company of America 21.1% 4th 1354 Large Blend The New Economy Fund 18.6% 21st 338 Global Large-Stock Growth Washington Mutual Investors Fund 16.8% 10th 1354 Large Blend -
5 years
Fund Total Return Percentile Peers Morningstar Category AMCAP Fund 12.7% 79th 954 Large Growth American Balanced Fund 10.3% 19th 404 Moderate Allocation American Funds Developing World Growth and Income Fund 6.0% 69th 629 Diversified Emerging Markets American Funds Global Balanced Fund 7.4% 63rd 431 Global Allocation American Funds Global Insight Fund 11.4% 70th 297 Global Large-Stock Blend American Funds International Vantage Fund 9.2% 35th 333 Foreign Large Growth American Mutual Fund 13.3% 67th 1023 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 Blend CGDV Capital Group Dividend Value ETF - - - Large Value CGGE Capital Group Global Equity ETF - - - Global Large-Stock Blend 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 Blend CGMM Capital Group US Small and Mid Cap ETF - - - Foreign Large Blend CGNG Capital Group New Geography Equity ETF - - - Diversified Emerging Markets CGUS Capital Group Core Equity ETF - - - Large Blend CGXU Capital Group International Focus Equity ETF - - - Foreign Large Growth Capital Income Builder 10.2% 39th 181 Global Allocation Capital World Growth and Income Fund 12.8% 47th 297 Global Large-Stock Blend EUPAC Fund 8.1% 46th 333 Foreign Large Growth Fundamental Investors 16.8% 16th 1161 Large Blend International Growth and Income Fund 11.2% 36th 622 Foreign Large Blend New Perspective Fund 13.7% 16th 285 Global Large-Stock Growth New World Fund 8.7% 30th 629 Diversified Emerging Markets SMALLCAP World Fund 6.6% 65th 145 Global Small/Mid Stock The Growth Fund of America 15.9% 39th 954 Large Growth The Income Fund of America 10.8% 9th 431 Moderately Aggressive Allocation The Investment Company of America 17.6% 7th 1161 Large Blend The New Economy Fund 12.5% 29th 285 Global Large-Stock Growth Washington Mutual Investors Fund 16.3% 31st 1161 Large Blend -
10 years
Fund Total Return Percentile Peers Morningstar Category AMCAP Fund 11.6% 91st 754 Large Growth American Balanced Fund 9.2% 11th 333 Moderate Allocation American Funds Developing World Growth and Income Fund 4.0% 73rd 453 Diversified Emerging Markets American Funds Global Balanced Fund 6.1% 42nd 324 Global Allocation American Funds Global Insight Fund 9.8% 37th 200 Global Large-Stock Blend American Funds International Vantage Fund 7.4% 35th 219 Foreign Large Growth American Mutual Fund 10.6% 18th 821 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 Blend CGDV Capital Group Dividend Value ETF - - - Large Value CGGE Capital Group Global Equity ETF - - - Global Large-Stock Blend 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 Blend CGMM Capital Group US Small and Mid Cap ETF - - - Foreign Large Blend CGNG Capital Group New Geography Equity ETF - - - Diversified Emerging Markets CGUS Capital Group Core Equity ETF - - - Large Blend CGXU Capital Group International Focus Equity ETF - - - Foreign Large Growth Capital Income Builder 7.0% 68th 148 Global Allocation Capital World Growth and Income Fund 9.5% 41st 200 Global Large-Stock Blend EUPAC Fund 6.4% 60th 219 Foreign Large Growth Fundamental Investors 13.2% 25th 894 Large Blend International Growth and Income Fund 6.4% 47th 448 Foreign Large Blend New Perspective Fund 12.1% 16th 193 Global Large-Stock Growth New World Fund 7.7% 3rd 453 Diversified Emerging Markets SMALLCAP World Fund 7.6% 29th 88 Global Small/Mid Stock The Growth Fund of America 14.5% 51st 754 Large Growth The Income Fund of America 8.0% 3rd 324 Moderately Aggressive Allocation The Investment Company of America 13.1% 27th 894 Large Blend The New Economy Fund 11.7% 19th 193 Global Large-Stock Growth Washington Mutual Investors Fund 12.6% 42nd 894 Large Blend
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Source: Capital Group, based on Morningstar data as of June 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 12 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, 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).
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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 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 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 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 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 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.
The 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.
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.
The Russell 2000 Index is a small-cap U.S. stock market index that makes up the smallest 2,000 stocks in the Russell Index.
The 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.
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.