Valuations alt text as of June 30, 2026 A graphic shows various asset and sub-asset classes’ valuation percentiles relative to fair value, where numbers in the lowest third represent undervaluation, numbers in the middle third represent fair value, and numbers in the highest third represent stretched valuation. For U.S. equities, the valuation percentile was 99% as of June 30, 2026, unchanged from March 31, 2026. For global ex-U.S. equities (unhedged), it was 88%, up from 77%. For developed markets ex-U.S. equities (unhedged), it was 81%, up from 74%. For emerging markets equities (unhedged), it was 99% compared with 80%. Factor valuations are relative to broad U.S. equities; 50%, for example, is as equally overvalued as broad U.S. equities. The valuation percentile for the value factor was 70% at the end of June 2026, down from 71% at the end of March 2026. For the growth factor, it was 77%, up from 58%; for the large-cap factor, it was 95%, up from 87%; and for the small-cap factor, it was 89%, up from 59%. For fixed income, the valuation percentile for U.S. aggregate bonds was 57% at the end of June 2026 compared with 59% at the end of March 2026; for global ex-U.S. aggregate bonds (hedged), it was 41%, up from 39%; for U.S. Treasury bonds, it was 55%, down from 57%; for U.S. short-term Treasuries, it was 49% compared with 53%; for U.S. intermediate-term Treasuries, it was 57% compared with 59%; for U.S. long-term Treasuries, it was unchanged at 56%; for U.S. credit spread, it was 81%, up from 79%; for U.S. high-yield corporate bond spread, it was 81%, up from 77%; for emerging markets sovereign bond (hedged) spread, it was 79%, up from 73%; for U.S. Treasury Inflation-Protected Securities spread, it was 56%, down from 60%; and for U.S. mortgage-backed securities spread, it was 87% compared with 86%.