Q4 2023 Index Performance Update

Although the U.S. economy continues to face downturn pressure due to increased interest rate, inflation, and the restart of student loan payments, consumer spending has increased by 5.8% in August compared to last year, according to the Commerce Department. As consumers tend to prioritize short-term needs over long-term goals under the current high-interest rate environment, the Innovation U.S. and Global Indexes increased weights in consumer-based industries including Consumer Durables and Information, Retail, and Finance. Innovative companies held by the indexes are anticipated to generate outperformance in the long run due to their unique advantages over their peers.