In this first quarterly Unicorn Market Monitor, innovation economy expands as unicorns brace for a reset in valuations.

Sustainable investments generally struggled in 2022. In the five years since Morningstar Indexes began tracking the risk/return profile of its sustainability range, 2022 was the worst performing calendar year. Meanwhile, indexes focused on gender equality and renewable energy outperformed, helped by below-market exposure to technology.

Fundamentals reset in Q4 2022, with outperformance in value stocks relative to growth.