The Future of Iron Ore Indices

On Nov. 26, 2018, S&P Dow Jones Indices (S&P DJI) launched the S&P GSCI Iron Ore and the S&P GSCI Industrial Metals & Iron Ore Equal Weight to provide investors exposure to one of the most important industrial commodities in the world. Iron ore is the second-largest commodity market by value after crude oil and Read more […]

Getting to Know the S&P/BMV IPC – An Iconic Representation of the Mexican Equity Market

2018 marks the 40th anniversary of the S&P/BMV IPC, launched on Oct. 30, 1978, as part of the Mexican market revolution. Honoring that milestone, we revisited the evolution of the index that has since become an icon of the Mexican equity market.[1] As of Dec. 31, 2017, Mexico had 141 listed domestic companies, with a Read more […]

Momentum for a Low-Carbon Economy – A Postcard From Poland

It is now three years since the historic events at the UN Climate Conference in Paris in December 2015. At that event, with much relief and emotion, the countries of the world came together to agree that global emissions should be limited. We would collectively seek to contain the temperature rise to within 2 degrees Read more […]

Passive Investing Opportunities in India

Fifty years ago, there were no index funds—all assets were managed actively. The subsequent shift of assets from active to passive management in the U.S. and European markets could be considered one of the most important developments in modern financial history, and this shift was the consequence of active performance shortfalls.[1] In India, we have Read more […]

Performance Attribution of the S&P 500® Quality Index

The past two months saw bouts of market volatility, which in turn is causing market participants to refocus on defensive equity strategies. Quality, together with other defensive factors such as low volatility, has a higher degree of downside protection compared with other risk factors like value or momentum. For example, during months in which the Read more […]

Brexit: Sell on May and Run Away?

29 months after the referendum that triggered Britain’s departure from the E.U., and a little over four months from the scheduled departure date, the nature of the ultimate exit deal (if any) remains uncertain. What can indices tell us about the market’s reaction and expectations? The volatility of the pound sterling has offered a direct link to the uncertainty Read more […]

Let’s talk about Communication

One of the largest ever changes to the Global Industry Classification Standard (GICS®) went into effect prior to the open on Monday 24th September, affecting around 10% of the S&P 500’s market capitalization.  In case you missed our previous announcements, here is a brief explanation of GICS, what changed, and why these changes went into Read more […]

S&P 500 Drops 90 points

Why? Trade Hopes dashed – It turned out a deal with China wasn’t quite yet a done deal. Politicians should be reminded that markets move much faster than trade negotiations or Congress. Yield Curve approaching inversion – Five-year drops below two-year, but maybe we should wait for the ten year to drop too. Rising Interest Read more […]

Mid Caps Less Risky Than Large Caps?

In November, there was high market volatility in response to at least a few major events including the U.S. midterm elections, Brexit, G20 and Fed Chair Powell’s comments.  The risk (measured by 30-day annualized volatility) on Nov. 30, 2018 for the S&P 500 was 20.6%, which is 3.5 times higher than its risk of 5.9% Read more […]

Capturing and Evaluating Intentionality in Funds

One of the most salient themes in this year’s 29th Annual SRI Conference was intentionality. The topic of intentionality has jumped to prominence in ESG discussions—particularly in regard to ESG ratings for mutual funds—and understanding what it means is important for ESG market participants. In ESG terms, intentionality aims to evaluate whether a given fund Read more […]