Equity Factor Report 2025 Q1 Performance Analysis

The document is an Equity Factor Report for the first quarter of 2025, focusing on the performance dynamics of Russell Investments' Global Factor Portfolios. It outlines the significant underperformance of the U.S. equity market compared to global counterparts, with the Russell 1000 Index reporting a return of -4.49%. In contrast, Developed ex-U.S. Large Cap and Emerging Markets showed positive returns of 6.35% and 3%, respectively. The report details the reversal in factor performance, noting that Low Volatility and Value factors outperformed with excess returns of +2.99% and +2.28%, while Growth and Momentum factors underperformed. The performance across regions is also discussed, highlighting consistent outperformance of Value and Low Volatility factors. Additionally, the report presents the performance of various subfactors, indicating strong returns for Value and Low Volatility subfactors, while Growth and Quality subfactors experienced negative returns. The document concludes with insights into the active risk levels associated with the factor portfolios.