Growth won globally.
Value won in Canada.

The second quarter of 2025 brought mixed results across global markets, with real differences between countries, sectors and factors. Nothing moved in the same direction at once, which makes it a useful quarter to look at closely.

Country performance

Korea, Israel and Greece led, each posting double-digit gains above 20%. At the other end, Saudi Arabia, Turkey and Thailand finished negative, with returns dipping as low as −10%.

Canada landed in the middle at roughly 5%.

Sector highlights

In Canada, information technology, financials and consumer discretionary led. Energy and real estate showed minimal growth.

Factor performance in Canada

Canada	Size	Value	Growth	High prof.	Low prof.
Large	8.2%	9.3%	7.2%	6.2%	10.0%
Small	12.8%	11.4%	14.1%	13.1%	12.4%

Canada market returns in Canadian dollars, Q2 2025. Source: Dimensional Fund Advisors Canada. Past performance is no guarantee of future results. All rights reserved.

Small caps outperformed large caps, 12.8% against 8.2%. Value beat growth within large caps at 9.3% against 7.2%, but the reverse held within small caps. Low-profitability stocks slightly outperformed high-profitability ones among large caps, and the pattern flipped again among small caps.

Factor performance globally

All country	Size	Value	Growth	High prof.	Low prof.
Large	6.4%	2.5%	10.4%	6.4%	6.4%
Small	5.5%	3.5%	7.5%	5.7%	5.4%

All country markets returns in Canadian dollars, Q2 2025. Source: Dimensional Fund Advisors Canada. Past performance is no guarantee of future results. All rights reserved.

Globally the picture inverted. Growth beat value within both large and small caps, and by a wide margin among large caps at 10.4% against 2.5%. Large caps edged out small caps, 6.4% against 5.5%.

By region: in the US, growth dominated, with large-cap growth returning about 12% while value lagged at 0.8%. In developed markets outside Canada and the US, small caps led at 11.3% with value trailing growth. In emerging markets, growth at 9.5% outperformed value, and small caps kept pace.

Bull markets last longer than you'd think

Length of bull markets, in months

Bull markets have historically lasted far longer than bear markets. The average runs about 67 months, or five and a half years. The longest stretched 148 months from 1987 to 2000, and even the post-2008 recovery ran 131 months from 2009 to 2020.

What this means for a portfolio

Trying to time entries and exits tends to cost more in missed opportunity than it saves in avoided declines. Staying invested through cycles has historically rewarded patience.

The other takeaway is the one this quarter makes for itself. Diversification across countries, sectors and factors matters because leadership doesn't announce itself in advance. Relying on a single region or a single strategy means accepting that you'll sometimes miss the strongest area entirely.