WisdomTree’s Q2 2025 Equity Factor Review, authored by Pierre Debru, dissects how macro policy shifts and earnings dispersion shaped regional equity factor performance and portfolio strategy.
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Growth and Momentum led globally, lifted by AI capex, U.S. mega-cap earnings, and a softer dollar; Value lagged in the U.S. but outperformed in Europe and EM.
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Small-cap revival emerged, especially in Europe and EM, as lower real yields and policy easing boosted cyclicals and exporters.
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Quality underperformed, weighed down by rising duration risk and reduced investor demand for defensive exposures.
What does this factor rotation mean for second-half allocation strategy? Read the full review for regional insights and positioning ideas.
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