Category Archives: Equities

How Low Can Volatility Go?

There’s still some time remaining in 2017, but if it goes the way the year has thus far, this will be the least volatile year for the S&P 500 in 22 years. Given this context, selection to the S&P 500® Low Volatility Index (an index of the 100 least volatile stocks in the S&P 500) Read more […]

Performance of Capital Markets in India Since Demonetization

On Nov. 8, 2016, Mr. Narendra Modi came on national television and announced that at the stroke of midnight, 500 and 1,000 rupee notes would no longer be legal tender.  These notes constituted 86% of the total currency in circulation.  This announcement was by far one of the boldest economic decisions taken in recent years.  Read more […]

Tuition Inflation: Indexing the Rising Cost of College

Costs associated with college tuition and fees have far outpaced general U.S. inflation, so for individuals saving for college, the ability to accurately measure and potentially keep pace with tuition inflation is important.  Recently, in this video, S&P Dow Jones Indices joined with Enduring Investments to discuss the newly launched S&P Target Tuition Inflation Index.  Below is a summary of the questions and Read more […]

Support or Resistance for Europe?

Subscribers to our European dashboard will know that October was a broadly positive month for the region’s equity markets; the S&P Europe 350 posted a 1.66% total return, while nearly every equity strategy in the region gained.  Additionally, the S&P Europe 350’s closing price level of 1,600 for October brought the benchmark to within touching Read more […]

Does Factor Investing Deserve More Attention in Hong Kong?

Factor investing, which is also broadly referred to as smart beta, has gained popularity in the global asset management industry, especially in the exchange-traded funds segment.  Factor-based index-linked products are used as cost-effective tools to enhance return or reduce risk by increasing number of market participants in the U.S., with 20.9% of U.S. ETP assets Read more […]

What Are Large-Cap Active Managers Up To? A Decomposition of Their Active Sector and Factor Bets (Part I)

The SPIVA U.S. Mid-Year 2017 Scorecard shows that the relative performance of actively managed domestic equities funds across large-, mid-, and small-cap segments has improved in recent months.  For example, only 56.56% of large-cap equity managers underperformed the S&P 500® for the one-year period, whereas 84.62% underperformed the benchmark at mid-year 2016.[1]  More importantly, when Read more […]

Getting What You Pay For

Earlier this week, the Wall Street Journal featured a long article arguing that Morningstar’s star ratings for mutual funds were a “mirage.”   Since these ratings exert a powerful influence over fund flows, their usefulness is obviously of keen interest to investors.  To its credit, Morningstar, although arguing that its ratings are a “worthwhile starting point,” Read more […]

TIPS Improve Income Stability For Lifestyle Goals

Commodities are a direct way to protect against inflation since they are the natural resources that build society.  The same food and energy that is in CPI (Consumer Price Index from the Bureau of Labor Statistics,) is in the commodity indices like the S&P GSCI and DJCI, and more energy has provided more inflation protection since energy is Read more […]

Impact of Allocation and Security Selection Decisions on Active Fund Performance: Evidence from the U.S. SPIVA Scorecard

The release of the SPIVA U.S. Mid-Year 2017 Scorecard provided a welcoming dose of optimism for proponents of active management.  One statistic, which was picked up heavily by financial media (Financial Times Article) and market participants, is that 52.49% of All Domestic Funds managed to beat the S&P Composite 1500® (the designated benchmark).  The conversation Read more […]

Style Drift of Active Funds Domiciled in India

Style consistency analysis is an essential element of the SPIVA® India Scorecard that helps evaluate the percentage of funds that retained the same investment style classification throughout the investment horizon.  Other than performance and survivorship, the style consistency of funds is an important metric for market participant that can influence their asset allocation decisions.  In Read more […]