Valuations alt text as of September 30, 2025 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 September 30, 2025, unchanged from June 30, 2025. For global ex-U.S. equities, it was 77%, up from 67%. For ex-U.S. developed markets, it was 74%, up from 70%. For emerging markets, it was 82% compared with 63%. 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 18% at the end of September 2025, unchanged from the end of June 2025. For the growth factor, it was 70%, up from 67%; for the large-cap factor, it was unchanged at 57%; and for the small-cap factor, it was unchanged at 13%. For fixed income, the valuation percentile for U.S. aggregate bonds was 66% at the end of September 2025 compared with 50% at the end of June 2025; for global ex-U.S. aggregate bonds, it was 41%, down from 45%; for U.S. Treasury bonds, it was 66%, up from 46%; for short-term Treasuries, it was 71% compared with 61%; for intermediate-term Treasuries, it was 68% compared with 57%; for long-term Treasuries, it was 52% compared with 49%; for U.S. credit spread, it was 88% compared with 85%; for high-yield corporate bond spread, it was 66% compared with 89%; for emerging markets sovereign bond (hedged) spread, it was 64% compared with 70%; for Treasury Inflation-Protected Securities, it was 58%, unchanged; and for mortgage-backed securities spread, it was 80% compared with 70%.