December 2024 Index Return

In stocks (equities):

• Returns were widely negative across all stock indexes for December, with the exception of US large cap growth (0.9%). US Small Cap Value had the worst monthly return, dropping -8.3%.
• While the S&P 500 declined -2.4% in December, the index rose 25.0% for the year, marking its second consecutive year with a 20%+ return. There are very few instances of two consecutive 20%+ annual returns for the S&P, with mixed results in the third year (we won’t prognosticate on what 2025 will bring).
• Emerging market stocks only declined -0.1% in December while developed intl. large cap stocks fell -2.7%.
• On a YTD basis, all stock indexes had a positive return with the exception of non-US REITs (-12.4%). Note that non-USD REITS returned -6.3% in December alone, comprising roughly half of its annual return.
• The MSCI ACWI gained a healthy 17.5% over 2025.

In bonds (fixed income):

• All bond indexes were negative during December with the exception of the 3-month Tbill. 10+ Yr Treasuries lost -5.3% over the month, and -5.8% for the year.
• Credit exposure was additive in 2025 as Corporates outperformed Treasuries by 170 bps and 330 bps in the 1-5 yr and 5-10 yr maturity buckets respectively.
• As a reminder for how the muni yield curve differs from the Treasury and Corporate yield curves, during 2025, munis underperformed their Treasury and Corporate counterparts in the 1-5 Yr bucket, outpaced Treasuries but not Corporates in the 5-10 Yr bucket, and outperformed both Treasuries and Corporates in the 10+ Yr bucket.
• Non-US bonds (hedged USD) were up a healthy 5.0% for the year.

Please let us know if you have any questions by emailing Support@xyinvestmentsolutions.com

As an additional note, please keep in mind that these reflect historical performance of the current models, not necessarily how accounts were invested in the past.