the top performing European equity style has been low vol
low volatility stocks normally outperform in times of significant market stress, promising more reliable chances of capital preservation and downside portfolio protection
IntroEquity style (or factor) investing is a systematic (=rule-driven) investment approach that targets stocks with specific characteristics.
Classic factorsFactors are quantifiable characteristics of securities that are believed to drive returns. Common factors include VALUE (stocks that are cheap and undervalued vs peers based on fundamental analysis), MOMENTUM (stocks that have shown strong recent price appreciation), QUALITY (stocks with strong balance sheets, profitability, and stable earnings) LOW VOLATILITY (stocks with relatively stable price movements), SIZE (smaller companies that tend to react with more agility to changes in economic conditions) and HIGH DIVIDEND (companies paying higher dividend income vs peers).
Chart guideIn the chart above we monitor the relative performance of different equity styles in Europe in different time periods.
Market implicationsInvestors can decide to overweight or underweight specific equity factors in different market conditions to generate outperformance. Adaptive factor investing is one of the many active drivers of performance in our Pantar.ai portfolios.
comparing EU sector performance
EU equity sector performance
comparing equity sector behaviors
Which sector is performing best?
Latest data pulled on: 23-03-2026
Focusing on YTD performance:
the top performing European equity style has been energy
energy stocks tend to perform well when oil and natural gas prices are rising, which is often influenced by increased global demand, geopolitical events, and production levels
IntroEquity sector investing involves focusing an investment portfolio (or a portion of) within specific segments of the economy.
SectorsSectors are broad categories that group companies with similar business activities. For example, the "Energy" sector includes companies involved in oil and gas exploration, production, and refining, or the "Healthcare" sector includes companies involved in pharmaceuticals, medical devices and hospitals.
The Global Industry Classification Standard (GICS) is a widely used system that divides the market into 11 main sectors: energy, financials, healthcare, technology, consumer discretionary, consumer staples, materials, communications & media, industrials, utilities and real estate.
Chart guideIn the chart above we monitor the relative performance of different equity sectors in Europe in different time periods. We keep track of 10 sectors out of 11 (missing real estate, which has a tiny market cap in public markets and thus considered negligible in Europe).
How to use sector investingSector investing can be appropriate for strategic, long-term investors as well as investors looking to manage a portfolio tactically. Strategic investors can use sector investing to take advantage of potential long-term trends in certain sectors. Tactical investors can invest in sectors over shorter time spans to potentially enhance returns or increase protection at different stages throughout a market cycle.
Market implicationsInvestors can decide to overweight or underweight specific equity sectors in different market conditions to generate outperformance. Adaptive sector investing is one of the many active drivers of performance in our Pantar.ai portfolios.