Category Archives: Equities

Performance of Indian Capital Markets in 2017

Capital markets in India had a bull run in 2017 and gave exponential returns across size, segments, and sectors. In this blog, we will analyze how capital markets in India have performed in 2017. Exhibit 1 and 2 showcase returns for India’s four leading size indices in 2017.  Exhibit 1: One-Year Absolute Returns of Size Read more […]

Most S&P and Dow Jones Islamic Indices Outperform Conventional Benchmarks in 2017 Driven by Strength in the Technology Sector

Most S&P and Dow Jones Shariah-compliant benchmarks outperformed their conventional counterparts for the year as information technology companies—which tend to be overweight in Islamic Indices—gained a whopping 39.4% beating the overall market by a wide margin, and financials—which are underrepresented in Islamic indices—experienced some weakness. This marked a reversal from 2016 where a surge in Read more […]

European Factor Highlights

We recently updated our S&P Europe 350 Factor Dashboard, which shows the factor exposures of a number of our European indices (interested parties can sign up here).  Here are some highlights from our year-end report. Little separated the returns to European core factor indices, but all outperformed While the extremely low stock-level dispersion contributed to Read more […]

A Growing ETF Market in India

A record-breaking collection on the Bharat 22 ETF (based on the S&P BSE Bharat 22 Index) earmarked a historical event for the Indian ETF market. The issue size pegged at to value INR 8,000 crores) received a nearly four-fold oversubscription, at over INR 31,000 crores.[1] This marked a huge success for the Indian government in Read more […]

Big Things Come In Small Packages – Part 4

Though the large-caps continue to rally more than the small-caps on the back of their biggest annual outperformance since 1999, small-caps persistently outperform mid and large-caps over longer periods of time, as shown below in the chart and in part 2 of this blog series. This has been shown by many researchers, most notably by Read more […]

Selling Equity Options or VIX® Futures: Two Different Ways to Short Volatility

2017 was a great year for shorting VIX futures strategies. The S&P 500® VIX Short-Term Futures Inverse Daily Index returned 186.39%. Selling volatility does not rely on interest rates or dividends. Historically, investors have been selling options to generate income. Compared to selling equity options, selling VIX futures is an operationally simple strategy that can Read more […]

A Bit of Long History

Houses or Stocks Either could be an investment, if only we knew which would perform better?  We don’t, but a recently released academic paper, “The Rate of Return on Everything, 1870-2015” offers understanding and some unexpected facts from the past.  The paper covers 16 developed markets and compiles the real and nominal returns on equities, Read more […]

Big Things Come In Small Packages – Part 3

If you found a small-cap fund with a 23 year track-record that performed in the top 10th percentile of its peers over a 3-, 5-, 10-, and 15-year period, might you consider investing?  How about if you found out it was also a fraction of the price of its peer group?  Sounds pretty attractive, but Read more […]

Big Things Come In Small Packages – Part 2

Not all indices are created equally, especially those representing US small-cap equities.  Many investors are surprised to learn that the S&P SmallCap 600 has outperformed the Russell 2000 by 2% annualized since inception (Dec. 31, 1994.)  This outperformance is persistent through different time periods, bull and bear market cycles, and with less risk.  The performance Read more […]

Prediction for 2018: There Will Be Many Predictions

A calendar that offers a forecast for every day of the coming year is not uncommon in Chinese households.  I don’t often hear references to the calendar on most days. But every now and again I would hear my mom marvel, “Oh that calendar was right on for today!” In investing, there is also particular Read more […]