The Factor Report

Market Wrap

For the week ended January 30th, 2026, stocks were higher globally. Bonds were flat for the week as the iShares Core US Aggregate Bond ETF (AGG) was unchanged with yields holding steady; the 10-year US treasury yield remained at 4.24%, according to Yahoo Finance. Asset price drivers of the week:

• Monday kicked things off on a positive note. Although durable goods orders came in ahead of forecasts, investors were really just feeling confident about the outcome of the Federal Reserve's two-day meeting that would start Tuesday.
• Tuesday brought more positive returns after a key home price index read above expectations, but consumer confidence fell. There was a lot of wait and see ahead of Wednesday's rate decision from the Federal Reserve.
• It was a mixed day on Wednesday as Emerging Markets rose and Non-US Developed fell, but the US (both stocks and bonds) remained about unchanged as the Federal Reserve delivered no surprises. The central bank pointed to an improving economy and steady employment in leaving its benchmark interest rate unchanged.
• Things were mixed again on Thursday, but US indices fell after some challenging earnings reports. Microsoft dropped despite beating earnings estimates thanks to forecasts of increased spending going forward and Tesla fell as Musk said the company is pivoting more to robotics.
• Stocks were lower on Friday after Trump announced his pick for the next Federal Reserve Chair, Kevin Warsh. It left uncertain the path for our central bank, especially as current Chair Jerome Powell is increasingly likely to stay on the board and wield some influence.
• Next week will bring us some key data, including auto sales in the US and a number of readings on the employment situation. Chief among those will be the January jobs report to be released on Friday morning (assuming we don't have another government shutdown on our hands).

Performance Summary

As shown in the chart, Emerging Markets was the winner for the third consecutive week, followed closely by Non-US Developed. Within the US, neither the Dow Jones Industrial Average nor the Nasdaq were able to beat the S&P 500; in fact, both fell despite the broader market rise. From a factor perspective, all factors except Low Volatility outperformed the global All Country World Index (ACWI).

In The News

Where are we with a government shutdown?

https://www.npr.org/2026/01/31/nx-s1-5694716/partial-government-shutdown

What does Trump's pick for next Fed Chairman mean for the economy and the Fed?

https://www.marketwatch.com/story/heres-what-kevin-warshs-selection-as-fed-chair-means-for-the-economy-markets-and-you-d11e30dc?mod=home_lead

Could changes be coming to US retirement policy?

https://www.thinkadvisor.com/2026/01/28/retirement-policy-change-in-2026-yes-its-possible/?kw=Retirement%20Policy%20Change%20in%202026%3F%20Yes,%20It%27s%20Possible&utm_source=email&utm_medium=enl&utm_campaign=earlywire&utm_content=20260129&utm_term=tadv&oly_enc_id=6911H2583589A7Z&user_id=3d158419d93f4751d4b3b79dd78d9abf446b89b61e92e7567cb4126b86cb53c5

Disclosures

Past performance may not be indicative of future results. Different types of investments involve varying degrees of risk. Therefore, it should not be assumed that future performance of any specific investment or investment strategy will be profitable or equal the corresponding indicated performance level(s). Moreover, you should not assume that any of the above content serves as the receipt of, or as a substitute for, personalized investment advice from Metric Financial.

All data and performance information sourced from Morningstar and MarketWatch, unless otherwise indicated.

USA is the MSCI USA index, Non-US Developed is the MSCI EAFE index, Emerging Markets is the MSCI Emerging Markets index, and All Country World is the MSCI ACWI index. One cannot invest in an index. Because the factor indexes have varying inception dates, some of the returns provided are back-tested and do not represent actual performance. Inception dates are as follows:

Momentum = MSCI ACWI Momentum NR USD Index (Inception: 11/30/95)

Value = MSCI ACWI Enhanced Value NR USD Index (Inception: 5/29/15)

Quality = MSCI ACWI Quality NR USD Index (Inception: 5/29/92)

Low Volatility = MSCI ACWI Minimum Volatility (USD) NR USD Index (Inception: 5/28/93)

Size = MSCI ACWI Risk Weighted NR USD Index (Inception: 4/6/11)

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