Model Portfolio

Monthly commentary: Target Allocation ETF model portfolio

Target board
Jan 22, 2025|ByMichael Gates, CFA

Performance and positioning update:

  • The expected market rally did not occur, ending a strong year for global stock markets on a down note.
  • Small cap and value stocks declined, while mega cap growth stocks regained market leadership.
  • International and emerging market stocks struggled due to a stronger US dollar and renewed tariff concerns.
  • The bond market faced rising yields despite a 0.25% rate cut by the Federal Reserve, with the 10-year Treasury yield reaching new highs for the year.

Market performance: December 2024

December 2024 market performance by market cap

Source: BlackRock. Monthly returns for the period 12/1/24 – 12/31/24. U.S. large cap stocks represented by the S&P 500 Index; U.S. small cap, Russell 2000 Index; international developed, MSCI EAFE Index; emerging market stocks, MSCI Emerging Markets Index; Treasury bonds, Bloomberg U.S. Treasury 7-10 Year Total Return Index; corporate bonds, Bloomberg U.S. Aggregate Bond Index; high yield bonds, Bloomberg High Yield 2 Issuer Capped Index; EM bonds, JP Morgan Emerging Market Bond Index-Global. Index performance is for illustrative purposes only. Index performance does not reflect any management fees, transaction costs or expenses. Indexes are unmanaged and one cannot invest directly in an index. Past performance does not guarantee future results.

Michael Gates
Michael Gates, CFA, Managing Director, is the head of Model Portfolio Solutions in the Americas within BlackRock's Multi-Asset Strategies and Solutions group.

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