15 Apr 2025
Coming into 2025, investors couldn’t have been more bullish. Whether you measure it by allocations to equities or investor sentiment – by both ideals – investors were about as bullish as ever.
With a clear trend driven by indexing and the Mag 7, many investors are inordinately positioned toward U.S. large cap stocks.
What a difference 90 days makes.
When trends break, the environment changes, and there is often a change in leadership in the market. Almost all the factors of Frontier’s differentiated positioning are in favor of this environment.
Find out more in my 2Q 2025 The Download.
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GLOSSARY OF INDICES:
- S&P 500 Index: Tracks the stock performance of 500 leading companies listed on stock exchanges in the United States.
- U.S. Large Cap Growth: Morningstar US Large Growth TR USD Index = Measures the large-cap growth segment of the US equity market, with no overlapping constituents across styles.
- U.S. Large Cap Core: Morningstar US Large TR USD Index = Measures the performance of large-cap US stocks, specifically the top 70% of the investable universe by market capitalization.
- U.S. Large Cap Value: Morningstar US Large Value TR USD Index = Designed to provide consistent representation of the value segment of the US equity market, with no overlapping constituents across styles
- U.S. Small Cap: Morningstar US Small TR USD Index = Measures the performance of small-cap stocks in the U.S.
- International Large Cap: Morningstar DM xNA NR USD Index = Measures the performance of large- and mid-cap stocks in developed markets outside of North America, representing the top 85% of the investable universe by float-adjusted market capitalization.
- International Small Cap: Morningstar DM xUS Small Cap NR USD Index = Measures the performance of small-cap stocks in developed markets around the world, excluding the U.S.
- Emerging Markets: Morningstar EM NR USD Index = Measures the performance of large-, mid- and small-cap stocks in emerging markets around the world, representing the top 97% of the investable universe by market capitalization.
- US Core Bonds: Morningstar US Core Bd TR USD Index = Measures the performance of fixed-rate, investment-grade USD-denominated securities with maturities greater than one year.
© Morningstar 2025. All rights reserved. The Morningstar Indexes are the exclusive property of Morningstar, Inc. Morningstar, Inc., its affiliates and subsidiaries, its direct and indirect information providers and any other third party involved in, or related to, compiling, computing or creating any Morningstar Index (collectively, “Morningstar Parties”) do not guarantee the accuracy, completeness and/or timeliness of the Morningstar Indexes or any data included therein and shall have no liability for any errors, omissions, or interruptions therein. None of the Morningstar Parties make any representation or warranty, express or implied, as to the results to be obtained from the use of the Morningstar Indexes or any data included therein.
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