2025 Stock Market: Correction or Opportunity? | Alpha Architect Commentary

Read the commentary: https://funds.alphaarchitect.com/wp-c...

The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than their original cost. Current performance may be higher or lower than the performance quoted.

To view the current performance of each fund, head to:
https://funds.alphaarchitect.com/qval
https://funds.alphaarchitect.com/qmom
https://funds.alphaarchitect.com/ival
https://funds.alphaarchitect.com/imom
https://funds.alphaarchitect.com/hide
https://funds.alphaarchitect.com/caos

Are we facing a correction… or uncovering an opportunity?
After two strong years in the U.S. equity market, 2025 started with a surprise. In this video, we walk through key developments from Q1 and explore what it could mean for factor investors moving forward.

Key Discussion Points:
• U.S. markets entered correction territory, with the S&P 500 down -4.27%
• International large blend led, raising questions of FOMO
• Value outperformed momentum globally, suggesting fundamentals matter again
• QVAL posted negative returns while maintaining a PE of 11.8
• IVAL delivered strong returns with a PE of 8.4
• QMOM struggled, but top holdings all have 100%+ momentum scores
• IMOM was a bright spot, with the strongest returns out of all of our funds and strong relative strength
• HIDE outperformed managed futures by nearly 5%
• CAOS gained while the S&P fell, as volatility returned in March

Timestamps:
0:00 – Correction or opportunity?
1:23 – U.S. equity review
3:30 – Value vs. Momentum
4:07 – QVAL and IVAL
6:45 – QMOM and IMOM
9:20 – HIDE and CAOS
10:48 – Favorite Q1 highlights

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Disclosures:
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