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Pure Factors
US Large NxtGen Index Report - January 2026

US Large NxtGen Index Report - January 2026

Weaker predictive strength and low beta orientation impact US Large NxtGen performance in 2025

IN THIS  REPORT

Brinson Attribution and Stock Performance

NxtGen Index gained 0.5% in Q4 2025 vs 2.4% for the US Large Cap benchmark. Relative underperformance was driven by stock selection effects (page 2).

Factor Attribution and Exposures

Low Beta orientation of the NxtGen Index contributes negatively to performance in Q4 and YTD 2025. Stock specific returns are negative in Q4 and approximately zero for the whole year (page 5).

Model Performance, Predictive Stability & Feature Importance

In 2025, the model’s predictive fidelity remained positive but declined from the earlier highs of 2024. In Q4 greater weight was assigned to Low Risk and Profitability characteristics - led by Semi-Variance, Gross Profits to Assets Ratio, and Return Volatility (page 8).

US Large NxtGen Index Report - January 2026
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