By comparison, the Nasdaq-100 Index, which is ultimately a mega-cap growth index, had one of its strongest six-month returns over this period, outperforming the S&P 500 by 19 percentage points. The narrow market leadership contributed to one of the worst six-month periods for the S&P 500 Equal Weight Index since its inception, as it lagged the S&P 500 by over 8 percentage points in 1H23. Only 28% of stocks included the S&P 500 outperformed the index, which, according to our equity strategy team, is one of the lowest readings in their data going back to 1985. These companies accounted for more than 70% of the return of the S&P 500 in 1H23. At the start of the year, the surging seven stocks accounted for roughly 20% of the S&P 500 and almost 47% of the Nasdaq-100. Performance presentation published 3 August 2023 (please consult your UBS financial advisor for the presentation).Īs discussed in the blog from our equity strategy team, The surging seven, equity returns have been driven by a select number of mega-cap growth-oriented companies (Apple, Microsoft, Nvidia, Amazon, Meta, Tesla, and Alphabet). A full factor quilt including the annual performance of individual factors, a multifactor approach, and the S&P 500 going back is available in our Factor It’s very much the same old song and dance from the 2017–21 period, when most equity factors lagged the S&P 500. So far in 2023, only quality has outperformed the S&P 500, and not by nearly enough of a margin to offset underperformance from the other factors.
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