Tag Archives: defensive equities
Examining the Effectiveness of Defensive Strategy Indices
What does history have to say about the effectiveness of factor indices as defensive tools? S&P DJI’s Craig Lazzara explores defense beyond bonds and how defensive factors influence risk/return in different market environments.
Have Defensive Sectors Stood the Test of Time in Global Markets?
In March 2020, the S&P Global BMI TR declined 14.3%, marking its third-worst month over the past 25 years. Meanwhile, some sectors within the index recorded significant outperformances compared with the broader market. The S&P Global BMI Health Care, S&P Global BMI Consumer Staples, and S&P Global BMI Utilities surpassed the benchmark by 9.9%, 8.9%,…
- Categories Equities
- Other Tags
Putting Defensive Indices to the Test
In January 2019, we highlighted several indices designed to reduce the impact of large equity market drawdowns. Here we analyze the same suite of indices divided across three broad categories: defensive equity, multi-asset, and volatility. This analysis simply reviews performance since the S&P 500®’s high on Feb. 19, 2020, through the close on Friday, March…
- Categories Factors, Multi-Asset
-
Other Tags
COVID-19, Dividend Aristocrats, factors, liquid alternatives, liquid alts, low volatility, managed risk, multi-asset, quality, RC2, risk control, risk management, risk parity, S&P 500 Dividend Aristocrats, S&P 500 Low Volatility, S&P 500 Quality, S&P Systematic Global Macro, smart beta, strategy, VEQTOR
- Categories
- Factors, Multi-Asset
- Other Tags
- COVID-19, Dividend Aristocrats, factors, liquid alternatives, liquid alts, low volatility, managed risk, multi-asset, quality, RC2, risk control, risk management, risk parity, S&P 500 Dividend Aristocrats, S&P 500 Low Volatility, S&P 500 Quality, S&P Systematic Global Macro, smart beta, strategy, VEQTOR
Positioning for Market Volatility Using Passive Strategies
Fluctuating periods of “risk-on” and “risk-off” mean that spikes in equity market volatility and large drawdowns are increasingly common in today’s economy. Exhibit 1 shows events throughout the current market cycle causing notable rises in volatility and large drawdowns. With more of these likely in the future, as our long bull market cycle ages, how…