Tag Archives: US FA
How Indexing Works for Model Portfolios
What’s the role of indices in constructing and evaluating model portfolios? S&P DJI’s Joseph Nelesen and BlackRock’s Elise Terry explore how indexing is changing the landscape for advisors and their clients and helping a range of market participants build and assess models across the asset class spectrum.
- Categories Equities
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Balancing Growth and Value in the Mid-Cap and Small-Cap Spaces: The S&P MidCap 400 GARP and S&P SmallCap 600 GARP Indices
Launched in February 2019, the S&P 500® GARP Index was the first transparent benchmark tracking growth companies that are identified as being higher quality with lower valuations. Given the success of this index, we launched the S&P MidCap 400® GARP Index and S&P SmallCap 600® GARP Index to expand the available toolkit. Since their launches…
A Long-Term Look at S&P 500 Equal Weight Index
How have S&P 500 Equal Weight Index’s exposures informed its performance over time? S&P DJI’s Hamish Preston and Invesco’s Nick Kalivas look under the hood at the features influencing S&P 500 EWI’s risk/return and explore what its expanding ecosystem, including sectors and futures could mean for its range of potential applications moving forward.
The S&P 500 Low Volatility Index: Currently Valued at the 99th Percentile of Cheapness Relative to the S&P 500
Investor enthusiasm for AI and mega-cap technology stocks has propelled the S&P 500® to a gain of more than 30% over the past 12 months. As the S&P 500 has been reaching new highs on a regular basis, it is understandable if low volatility stocks have not been at the top of investors’ minds. This…
- Categories Factors
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- Factors
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Diversification, Equity & Indices
The results of S&P DJI’s latest SPIVA U.S. Scorecard are in: Most large-cap active managers underperformed the S&P 500® for the 14th consecutive year in a row. 60% of active large-cap funds underperformed the S&P 500 in 2023, slightly better than the long-term average of 64%, and a relatively benign result considering the dominance of…
The February 2024 Rebalance of the S&P 500 Low Volatility Index
Since the previous rebalance for the S&P 500® Low Volatility Index on Nov. 17, 2023, and its most recent on Feb. 16, 2024, the S&P 500 delivered a stunning 11.3% return. During this period, the S&P 500 Low Volatility Index was up 5.3%, strong by historical standards, albeit underperforming the S&P 500. As has been the…
- Categories Factors
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Magnificent Mid Caps and Sensational Small Caps
U.S. equities rose in 2023, with the mega-cap “Magnificent Seven” driving most of the S&P Composite 1500®’s 25% gain. While mega caps continued to outperform in January 2024, not all seven of the aforementioned group ranked highly. This has led to some market commentators looking to coin new phrases: “Sensational Six” or “Super Six” (the…
- Categories Equities
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S&P 500 Highs Keep Coming
The S&P 500® closed at another record high today, marking the ninth all-time high closing price level so far this year. Although all-time highs are not unprecedented—2024 is the 41st year since 1957 to host a new high—a few observations stand out when looking at this year’s records. First, January 2024 saw the end of…
- Categories Equities, S&P 500 & DJIA
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The S&P 500 ESG Index Turns 5!
The S&P 500® ESG Index celebrated its fifth birthday on Jan. 28, 2024. Over the past five years, the index has become an important piece of the sustainable indexing puzzle for investors looking to leverage the strength of the S&P 500 while incorporating meaningful and measurable sustainability-focused enhancements. Traditionally, five-year celebrations are marked by gifting…
- Categories ESG
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- ESG
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Bond Beginnings and Beyond
American political consultant James Carville once commented that he’d like to be resurrected as the bond market because, “you can intimidate everyone.” As of July 2023, the global bond market comprises about USD 135 trillion of securities, of which rated corporate debt represents USD 23 trillion.1 U.S. corporate debt makes up roughly half of the…
- Categories Fixed Income
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