March 2025 Index Returns

In stocks (equities):

• Uncertainty around tariffs and trade wars continued to weigh on US stocks as stocks across the market cap and valuation spectrum fell in March. Large cap growth fell -8.4% in March, bringing it down -10% YTD. Large value was the best US stock asset class during March, losing -2.8%, and is the only US stock asset class with a positive return YTD (+2.1%).
• Intl. large cap stocks also fell -0.6% in March but have still gained 6.2% YTD, outperforming their US large cap stock counterparts (e.g. R1000) by 10.9% over the last three months.
• Intl. large cap value and intl. small cap value have added 10.3% and 5.8% respectively on a YTD basis. Intl large cap value has outperformed US large cap growth by over 20% YTD.

In bonds (fixed income):

• Bond returns were mixed in March as munis fell across the yield curve as did LT Treasuries, while ST and IT Treasuries and Corps were positive.
• Over the last three months, Treas/Corp returns have outpaced munis. Our friends at iShares shared with us the divergence in Treas/Corp vs. munis "is largely driven by yield curve reshaping in the Muni market, with long-term yields increasing." Munis have also been negatively impacted by "widening credit spreads, seasonal weakness, and heavy issuance."
• All bond returns are positive over the last one yr and most are positive over the last three years.

Finally, while many investors may be focused on US stock returns, it is important to remember that a 60/40 globally balanced portfolio is down -0.3% YTD, While clients are not going to be excited about negative returns, we have been hearing anecdotally that some clients are pleasantly surprised as they expected their portfolios to have much greater declines.

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.