The market ended the month of July on a down note, but the S&P 500 (SPY) still ended the month with a gain of 2.3%. The Dow (DIA) only gained 0.2%, however, while the Tech-heavy Nasdaq 100 (QQQ) gained 2.4%.  While the cap-weighted S&P gained more than 2%, the equal-weight version of the index (RSP) gained just 1%.

Above is a look at recent performance across asset classes using our key ETF matrix.  For each ETF, we show its year-to-date change through July, its performance in July, and its performance today on the first trading day of August.

While domestic equities posted small gains in July, there was quite a bit of disparity among international markets.  The all-world ex US ETF (CWI) actually fell 1.1% in July, while countries like Brazil (EWZ), France (EWQ), Germany (EWG), India (INDA), Japan (EWJ), and Israel (EIS) fell even more than that.  China (MCHI) and Hong Kong (EWH) went the other way with gains of more than 4% during the month.  On the year, China (MCHI) finished July up 23.75% year-to-date, which is much better than SPY's 8.5% gain.  Notably, India (INDA) ended July exactly flat on the year, which trails basically every other country around the world in terms of 2025 equity market returns.

Getting back to the US, sector returns have been scattered recently, with areas like Consumer Staples (XLP) and Health Care (XLV) selling off in July, while Industrials (XLI), Tech (XLK), and Utilities (XLU) -- all areas benefitting from the AI Boom and its build-out -- rallied.

To start August, however, Consumer Staples (XLP) and Health Care (XLV) are holding up well while the rest of the market plunges today.

In terms of large-caps versus small-caps, yet again, the small-cap Russell 2,000 (IWM) is lagging.  IWM is down 2.1% today after finishing July in the red on a year-to-date basis.  The small-cap value ETF (IJS) ended July down 6.4%.  That's nearly 15 percentage points weaker than the 8.5% gain seen for the large-cap SPY.  Will small-caps ever outperform again?

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