{"id":54425,"date":"2026-01-15T09:37:59","date_gmt":"2026-01-15T14:37:59","guid":{"rendered":"https:\/\/www.inovestor.com\/?p=54425"},"modified":"2026-01-16T09:45:00","modified_gmt":"2026-01-16T14:45:00","slug":"performance-commentary-u-s-factor-models","status":"publish","type":"post","link":"https:\/\/www.inovestor.com\/en-ca\/2026\/01\/performance-commentary-u-s-factor-models\/","title":{"rendered":"Performance Commentary \u2014 U.S. Factor Models"},"content":{"rendered":"

Introduction<\/strong><\/p>\n

The year 2025 was favorable for U.S. equities. The S&P 500 ended the year up 17.88%<\/strong>. Against this backdrop, the median return of U.S. factor models stood at 14.87%<\/strong>, below the market. Behind this average, however, lies a pronounced gap between a small group of very strong performers and several models that lagged meaningfully.<\/p>\n

\"\"<\/p>\n

Top-Performing Models<\/strong>
\nThe five leading models clearly benefited from exposure to the most supportive segments of the market.<\/p>\n

The US Price Momentum CPMS Model<\/strong> ranked first with a return of 29.63%<\/strong>. Its heavy exposure to technology<\/strong> and communication services<\/strong>, including Nvidia<\/strong>, Meta Platforms<\/strong>, Microsoft<\/strong>, and Broadcom<\/strong>, allowed it to fully capture momentum tied to artificial intelligence and digital infrastructure.<\/p>\n

Close behind, the US Asset Growth CPMS Model<\/strong> delivered 26.50%<\/strong>, supported by a similar mix of large technology leaders and companies investing aggressively for future growth.<\/p>\n

The US Earnings Momentum CPMS Model<\/strong> posted 25.10%<\/strong>, benefiting from rapid earnings growth across several technology and industrial companies well positioned in the current cycle.<\/p>\n

The US Earnings Value CPMS Model<\/strong> generated 21.97%<\/strong>, combining dominant technology holdings with financial institutions such as JPMorgan<\/strong> and Goldman Sachs<\/strong>, as well as industrial names like Caterpillar<\/strong>.<\/p>\n

Rounding out the top group, the US Large Cap D10 IncomeAsset Growth CPMS Model<\/strong> returned 21.13%<\/strong>, reflecting a balanced exposure between large-cap technology companies and solid financial holdings.<\/p>\n

Models Lagging the Market<\/strong>
\nAt the other end of the spectrum, five models significantly underperformed the market in 2025.<\/p>\n

The US Earnings Growth CPMS Model<\/strong> posted a return of -3.68%<\/strong>, weighed down by a more defensive positioning and limited exposure to the strongest technology segments.<\/p>\n

The US Quality Growth Opportunities CPMS Model<\/strong> advanced only 0.30%<\/strong>, reflecting a heavier allocation to healthcare<\/strong> and consumer staples<\/strong>, including Johnson & Johnson<\/strong> and Procter & Gamble<\/strong>, which provided stability but little growth.<\/p>\n

The US Dividend Growers CPMS Model<\/strong> recorded 4.62%<\/strong>, consistent with its focus on dividends<\/strong> and holdings such as Coca-Cola<\/strong> and Bank of America<\/strong>, which were less favored in a growth-driven year.<\/p>\n

The US Dangerous CPMS Model<\/strong> ended the year at 5.96%<\/strong>, reflecting a more cautious structure with limited exposure to leading technology stocks.<\/p>\n

Finally, the US D10 DividendEarnings Growth CPMS Model<\/strong> delivered 7.65%<\/strong>, constrained by its exposure to utilities<\/strong> and telecommunications<\/strong>, including Verizon<\/strong>, which underperformed the broader market.<\/p>\n

Overall Perspective<\/strong>
\nThe year 2025 once again highlighted the importance of sector positioning. Models with meaningful exposure to technology and high-growth companies significantly outpaced the market. In contrast, more defensive and income-oriented approaches provided stability but delivered materially lower returns.<\/p>\n

Conclusion<\/strong>
\nIn 2025, performance was concentrated in a small number of dominant sectors and stocks. Models that embraced this concentration generated returns well above 25%<\/strong> in some cases. More conservative models fulfilled their stabilizing role but trailed the S&P 500 by a wide margin. This balance between styles remains essential to navigating market cycles with discipline and consistency.<\/p>\n

Performance \u2013 Factor Contribution (Last 5 years)<\/strong><\/p>\n

\"\"<\/p>\n","protected":false},"excerpt":{"rendered":"

Introduction The year 2025 was favorable for U.S. equities. The S&P 500 ended the year up 17.88%. Against this backdrop, the median return of U.S. factor models stood at 14.87%, below the market. Behind this average, however, lies a pronounced gap between a small group of very strong performers and several models that lagged meaningfully. […]<\/p>\n","protected":false},"author":36,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[55,470,1],"tags":[],"class_list":["post-54425","post","type-post","status-publish","format-standard","hentry","category-modelportfolio","category-modelportfolio-en-ca","category-uncategorized"],"acf":[],"yoast_head":"\nPerformance Commentary \u2014 U.S. Factor Models - Inovestor<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.inovestor.com\/en-ca\/2026\/01\/performance-commentary-u-s-factor-models\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Performance Commentary \u2014 U.S. Factor Models\" \/>\n<meta property=\"og:description\" content=\"Introduction The year 2025 was favorable for U.S. equities. 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