Monthly Commentary - March, 2024

The Markets

Over the past month, Mid Cap Growth, Core, and Value reported increases of 5.71%, 5.58%, and 5.53% respectively, with year-to-date figures also strong. Large Cap stock experienced gains, especially Large Growth with a year-to-date rise of 12.55%, although the one-month gain was lower at 2.07%. Small Caps had smaller increases, with Small Value barely showing a year-to-date change.

In sector performance, Energy led the monthly gains at 10.49% and year-to-date at 13.52%. Materials and Utilities also had gains, whereas Technology and Consumer Discretionary sectors had smaller changes. REITs and Telecommunications saw year-to-date decreases.

Bond markets were mixed, with increases in the U.S. Core and High Yield Bonds by 0.90% and 1.73% over the month, respectively, but year-to-date figures were down for Core Bonds and up for High Yield Bonds. International Bonds decreased year-to-date by 2.09%.

International stocks showed growth, with Europe increasing by 3.82% over the month and the Pacific by 2.64%, while Latin America decreased year-to-date by 2.13%.

In alternative assets, gold increased by 8.32% over the month and by 7.37% year-to-date. Broad Commodities rose to 9.97% year-to-date. The US Dollar had a slight increase, reflecting a cautious approach to currency and commodities.

iQUANT Models

Over the past month, the models saw varied returns, with the iQ Mid Cap Growth Model achieving a remarkable one-month gain of 13.75%, alongside a significant year-to-date (YTD) return of 35.84%, and an even more impressive 12-month performance of 45.08%. This trend of growth-focused models outperforming is echoed in the 12-month returns of the iQ Sensitive Super Sector Model, which led with a 64.33% return.

On the other end of the spectrum, the iQ Domestic Income Model and the iQ All Assets ETF Model experienced lower returns, with year-to-date figures at -0.21% and 1.69%, respectively. These models also saw dips over the last 12 months. This downturn aligns with the broader market trend where bonds and various alternative indices have seen declines in the same period.

The top five performers over 12 months, in addition to the iQ Mid Cap Growth and iQ Sensitive Super Sector models, include the iQ All Cap High Yield Model, iQ Leveraged 2x ETF Timing, and the iQ ESG 10 (SRI) Model. On the lower end, the iQ Nasdaq 10 Model struggled on a monthly basis but managed to uphold a solid 12-month return of 29.94%.

This information highlights the significance of diversifying across strategies that show low correlation, as some may perform well in specific times, offsetting the lesser performance of others. The iQUANT Portfolio Optimizer tool is designed to assist advisors in constructing portfolios that effectively blend models with complementary correlations.