Insights

Hype around the Magnificent Seven¹ and artificial intelligence (AI) may have shifted focus away from value stocks, which are up 29.6% over the past year, as measured by the Russell 1000® Value Index. Moreover, for the majority of the past three years, a combination of the Magnificent Seven and a U.S. Value exposure would have generated greater returns and lower risk than simply holding the 387 other companies within U.S. Growth.² We had expected the market to broaden and this theme has come to fruition.

While U.S. election outcomes may raise concerns, we think responsible investors ought to remain resolute. For more than 40 years, Calvert has been a leader in Responsible Investing (RI), growing to nearly $40 billion in assets under management across divergent political environments. Ultimately, we believe secular global trends like climate change and demographic shifts impact long-term value creation, transcend politics, and will continue to drive commitment to RI.