The Factor Report

Market Wrap

For the week ended August 21st, 2026, stocks were mixed but ultimately lower globally. Bonds were lower for the week as the iShares Core US Aggregate Bond ETF (AGG) fell 0.13% with yields rising; the 10-year US treasury yield increased to 4.74%, according to Yahoo Finance. Asset price drivers of the week:

• Monday kicked off with some old news - stocks fell as talk of deal with Iran turned to renewed tensions and rising oil.
• With no meaningful data available, it was more of the same on Tuesday.
• On Wednesday, stocks rose modestly as investors did some bargain hunting amidst evidence there is a shipping lane in the Strait of Hormuz.  
• The selling resumed on Thursday after the Trump administration announced a treasury purchase program. That should have caused yields to fall, but they continued to rise.
• Indices managed some gains on Friday as bond yields held somewhat steady and a report showed the US services sector displayed some strength in July.
• Next week will bring some key data points, including building permits, new home sales, the Federal Reserve's preferred measure of inflation, weekly jobless claims, and consumer sentiment.

Performance Summary

As shown in the chart, Emerging Markets had the best week while the US led Developed Markets lower. Within the US, the tech-heavy Nasdaq outperformed was a major drag, but the more traditional stocks of the Dow Jones Industrial Average outperformed. From a factor perspective, Low Volatility and Quality in the US beat the broader S&P 500.

In The News

A great piece on mistakes not to make with your retirement accounts.

https://www.fa-mag.com/news/7-fatal-errors--mistakes-that-cannot-be-fixed-88157.html?section=40&utm_source=FA+Magazine&utm_campaign=849acebd04-FAN_FA+News_Russ+Prince+9%2F16_081926&utm_medium=email&utm_term=0_-02ce404ce3-625981838

Why women face higher healthcare costs in retirement and what to do about it.

https://www.fa-mag.com/news/retired-women-face-18--higher-healthcare-bills-as-costs-soar-to--185k-88121.html?section=143&utm_source=FA+Magazine&utm_campaign=b9b4b6d89e-FAN_Women+%26+Planning_Fidelity_081826+GTG&utm_medium=email&utm_term=0_-02ce404ce3-625981838

What's wrong with target date funds?

https://www.marketwatch.com/story/are-target-date-funds-hurting-americans-as-they-live-longer-929f4f92

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)

Metric Financial, LLC (“Metric”) is a registered investment adviser offering advisory services in the State of Connecticut and in other jurisdictions where exempted. Registration does not imply a certain level of skill or training. Follow-up or individualized responses to consumers in a particular state by Metric in the rendering of personalized investment advice for compensation shall not be made without our first complying with jurisdiction requirements or pursuant to an applicable state exemption.

All written content is for information purposes only. Opinions expressed herein are solely those of Metric, unless otherwise specifically cited. Material presented is believed to be from reliable sources and no representations are made by our firm as to another parties’ informational accuracy or completeness. All information or ideas provided should be discussed in detail with an advisor, accountant or legal counsel prior to implementation.