SPY - Q2 2024 Active Management Review: Momentum Keeps Rolling

2024-07-25 10:00:00 ET

Summary

• The second quarter was a more favorable environment for active managers in Global ex-U.S., U.S. Small Cap, Japan, Australia, and Canada.
• The Momentum factor was once again the standout and most relevant positive factor in all regions.
• The Quality factor lagged in most markets, with the exception of Emerging Markets, the UK, and Canada.
• The information technology sector outperformed in most regions during the second quarter, driven by continued investor enthusiasm over AI.

The Momentum factor picked up where it left off at the end of the first quarter , turning in another standout performance in the April-through-June timeframe and ending the second quarter as the factor most relevant to positive performance. Momentum benefited from continued optimism in markets that inflation is coming under control and that the U.S. economy will be able to achieve a soft landing . While the rate cuts that were predicted at the beginning of the year have yet to materialize in the U.S. and other major markets, investors expect that many central banks will begin easing during the second half of the year ....

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