Tag Archives: S&P 500

Real Estate Gains Prominence in the S&P 500 Low Volatility Index

Year to date, the S&P 500 Low Volatility Index® has underperformed its parent S&P 500, up 5.52% compared to a 7.55% (through Aug. 16, 2018 close) increase for the benchmark. Those who are familiar with low volatility strategies will recognize that this performance is consistent with the historical pattern of returns and in line with Read more […]

Growth Is Still Hot Only In Small Caps

In July, the total return of the S&P SmallCap 600 Growth was 3.75%, which was 1.15% higher than the total return of 2.60% generated by the S&P SmallCap 600 Value.  This is interesting since typically growth does not outperform value in small caps when value outperforms growth in large and mid caps.  (In July, the total Read more […]

Why is the GICS Telecommunications Sector Becoming the Communication Services Sector?

With the number of telecom companies shrinking, it is clear that communications is much bigger than telecom – Communication Services includes any content delivered on networks.  The old Telecommunications Sector was vanishing because it was missing new and popular ways people communicate now. GICS – the Global Industry Classification Standard – is widely used to Read more […]

Trading in Facebook Shows Indexing Has Little to Do With Valuation-Based Dislocations

By the close of trading on Thursday, July 26, 2018, shares in Facebook (FB) traded down almost $99 billion, or 19% of their market value. Despite FB’s beginning weight of 2.16%, the S&P 500® was almost flat, losing 0.30% on the day. I suspect you will not hear much about this from those who attempt Read more […]

In Small Caps, Financials Rise Most From GDP Growth

On Friday morning the GDP (Gross Domestic Product) for Q2 2018 is set to be announced, and the consensus estimate from the Wall Street Journal survey of more than 60 economists is at 4.1%, the highest (actual) growth since Q3 2014.  Although forecasts greatly vary this quarter, the main factors likely influencing growth are tax policy, retail Read more […]

Proximate Cause

Our colleagues at S&P Global Market Intelligence recently completed a paper analyzing the impact of exchange-traded funds on stock-level pricing.  Their work found that “…the impact of ETF trading is transient and of only a modest magnitude under even extreme assumptions” (my italics).  This conclusion is a rebuttal to critics who believe that the growth Read more […]

Some Bite-Sized Highlights from our Sectors Webinar

We recently hosted a webinar examining the potential value in a sector-based approach to portfolio construction, their application in navigating different market environments, and some key considerations for those adopting sector-based strategies.  You can view a replay of the event here; a few highlights might whet the appetite… The Global Importance of U.S Equity Sectors Read more […]

How Low Volatility Could Make You “King of the Mountains”

The world’s most prestigious cycling race, the Tour de France, begins tomorrow.  The tour lasts three weeks and comprises a series of one-day stages.  Although the main prize – the yellow jersey – is awarded to the rider that takes the minimum amount of time to complete the entire tour, there are plenty of races Read more […]

Small Cap Premium Is 5th Biggest In History

Small caps are outperforming large caps (S&P 600 (TR) – S&P 500 (TR)) in H1 2018 by the most in eight years, since H1 2010, from growing  concerns over rising tariffs and general U.S. foreign trade policy. In the past four months, the smaller companies have outperformed larger companies by 10.1%, contributing to the 5th biggest Read more […]

Can small-cap outperformance continue?

Small caps have materially outperformed large caps in 2018, with the S&P SmallCap 600 outpacing the S&P 500 7.80% to 2.58% between Dec. 29, 2017, and May 25, 2018.1 Below, I highlight what I believe to be the drivers of small-cap returns this year, and why I believe the trend could continue. Tax cuts have Read more […]