Who Wins When Interest Rates Change?

The impact of changing interest rates varies significantly across companies and investment styles. Rising rates have historically benefited value stocks, small-cap companies, and firms with strong fundamentals, while high-dividend-yield and low-volatility stocks tend to lag. Conversely, falling rates often create a more favorable environment for growth stocks and larger companies, while also supporting high-dividend-yield and low-volatility strategies.

Source: Capital IQ, Bloomberg, First Trust, The Business Week Graphic

This graph was produced by Lucas Juery, CFA, CFPⓇ and is not intended to provide financial advice.