Value stocks outperformed growth stocks in 2022 for the first time since 2016.¹ But 2023 has been challenging for value stocks as the financial sector continues to struggle in the wake of challenges in the banking sector. Despite this, we think value's outperformance in 2022 could be the beginning of a multi-year outperformance trend.

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¹ Unless otherwise noted, growth stocks are measured by the Russell 1000 Growth Index, value stocks are measured by the Russell 1000 Value Index, and international stocks are measured by the MSCI EAFE Index. Russell 1000 Growth Index measures the performance of the large-cap growth segment of the US equity universe. Russell 1000 Value Index measures the performance of those Russell 1000 Index companies with lower price-to-book ratios and lower forecasted growth values.

Important Risks: Investing involves risk, including the possible loss of principal. • Different investment styles may go in and out of favor, which may cause underperformance relative to the broader stock market. • Small- and mid-cap securities can have greater risks and volatility than large-cap securities. • Foreign investments may be more volatile and less liquid than U.S. investments and are subject to the risk of currency fluctuations and adverse political, economic and regulatory developments. • Investments in the commodities market may increase liquidity risk, volatility, and risk of loss if adverse developments occur.

The views expressed here are those of the authors and should not be construed as investment advice. They are based on available information and are subject to change without notice. Portfolio positioning is at the discretion of the individual portfolio management teams; individual portfolio management teams, and different fund sub-advisers, may hold different views and may make different investment decisions for different clients or portfolios. This material and/or its contents are current as of the time of writing and may not be reproduced or distributed in whole or in part, for any purpose, without the express written consent of Hartford Funds.