Tag Archives: pure style
A Selective Approach to Style: The S&P Pure Growth and Value Indices
S&P Dow Jones Indices (S&P DJI) offers style and pure style indices, which categorize companies based on their growth and value characteristics. We recently published the paper Comparing S&P Style & Pure Style Indices, where we highlighted differences in design, fundamentals and potential applications for both index series. Exhibit 1 summarizes the index construction of…
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Surveying Style Indices
How can index construction inform style selection? S&P DJI’s Craig Lazzara takes a closer look at the S&P Style and S&P Pure Style Indices and how these different approaches to indexing Growth and Value are designed to help advisors align strategies with client objectives.
- Categories Equities, Factors
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2023, Craig Lazzara, equities, factors, Financial Advisors, growth investing, growth vs. value, indexing, pure growth, pure value, S&P 500 Growth, S&P 500 Pure Growth, S&P 500 Pure Value, S&P 500 Value, S&P Pure Style, S&P Pure Style Indices, S&P Style, Style, style bias, U.S. style, US FA, value investing
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- 2023, Craig Lazzara, equities, factors, Financial Advisors, growth investing, growth vs. value, indexing, pure growth, pure value, S&P 500 Growth, S&P 500 Pure Growth, S&P 500 Pure Value, S&P 500 Value, S&P Pure Style, S&P Pure Style Indices, S&P Style, Style, style bias, U.S. style, US FA, value investing
Why What’s Inside the Style Box Matters
Take a closer look at the style spectrum with S&P DJI’s Garrett Glawe and explore how index construction influences risk/return.
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Continued Dominance of Growth Style Investing
Growth style investing has outperformed value for over a decade but its relative returns against value so far in 2020 have been unprecedented: the S&P 500® Growth index boasts its highest-ever year-to-date relative returns (+32%) versus its value counterpart through the third quarter. This comes despite growth’s eight-month winning streak coming to an end in…
- Categories Factors, S&P 500 & DJIA
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Combining Value and Growth in a Pure Style Way
When it comes to style investing, pure style indices that select and weight securities based on their style scores tend to be less correlated with each other, have higher return spreads, and higher betas to the benchmark than the traditional market-cap-weighted style indices that have overlapping securities. Additionally, when one style is favored over the…
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S&P Pure Style Indices: Implications of Higher Return and Correlation Spread
The S&P Style Indices and S&P Pure Style Indices take distinct approaches in differentiating between value and growth factors. In past blogs,[1] we examined how differences in index construction can affect the performance of the indices in both series over a long-term investment horizon. In this blog, we examine how the suite of pure style…
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Style Designed For Performance
Style, the name for the value (growth) factor, is one of the oldest known investment factors. It can be defined in different ways, but in the S&P Composite 1500 that includes the S&P 500, S&P MidCap 400 and S&P SmallCap 600, style is measured by growth and value along two separate dimensions, with three factors used to…
- Categories Equities, Factors, S&P 500 & DJIA, Strategy
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An Unfair Fight: Value Managers Were Crushed
When I was in the U.S. Army, the doctrine for an attack specified a desired ratio of at least three of us versus every one of them. This would help to ensure an unfair fight. When your life is on the line, you want the odds in your favor. Why should that desire to tilt…
Pure Style Indices: A Finer Tool With Higher Style Focus
Style investing as an investment approach has long been utilized by market participants to group securities based on their common characteristics and risk/return drivers. Those common characteristics, in turn, help investors make strategic and tactical asset allocation decisions. The first-generation S&P U.S. Style Indices serve as effective underlying tools for market participants seeking a passive…
Why Your Interest In Weights Should Rise With Rates
Historically as interest rates have risen, equities have done well. As illustrated in this post, since 1971, the S&P 500 (TR) has gained about 20% on average in rising rate periods, has gained 8 of 9 times and has gained nearly 40% twice with less than a 4% loss for its worst rising rate period. Also shown…