Tag Archives: S&P SmallCap 600

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 […]

Turning Point?

Here are six notable developments in the U.S. financial markets in September 2017. Smaller caps outperformed large caps. Value outperformed growth. Energy was the top-performing sector, and the utilities sector was the worst-performer. Developed markets posted gains, while emerging markets lost steam. Commodity indices rebounded, driven by recent strength in energy. U.S. 10-year and 30-year Read more […]

Impact of Rising Interest Rates on Small-Cap Indices

Rising interest rates certainly has become a central investment theme going into 2017.  The 10-Year Treasury yield closed at 2.48% on Jan. 27, 2017, representing an increase of nearly 103 bps from six months ago.  Research has shown that equities tend to perform better following a rate hike, if inflation levels are moderate.  However, return Read more […]

Quality: A Driving Factor of Small-Cap Returns

Much has been written about the performance differential between the two leading small-cap indices, the S&P SmallCap 600® and Russell 2000.  Over a long-term investment horizon, the S&P SmallCap 600 has outperformed the Russell 2000 with less risk.  Part of the performance differential can be attributed to the June Russell rebalancing effect.  As winners from Read more […]

The Little Engine That Could

Since the U.S. presidential election, headlines touting small-cap performance have almost invariably cited the Russell 2000.  As impressive as that index’s return has been, S&P DJI has a little engine that persistently wins the small-cap race—the S&P SmallCap 600®.  Outperformance of the S&P SmallCap 600 versus the Russell 2000 primarily has to do with two Read more […]

Examining Sector and Factor Performance in the Third Quarter of 2016

High beta, value factors among the star performers, while low volatility lags amid heightened appetite for risk The high beta, value and size factors outperformed the broad-market S&P 500 Index by a sizeable margin during the third quarter, with the S&P 500 High Beta Index gaining 12.18% during the three-month period – outpacing all other Read more […]

The Outlook for Active Alpha

Aficionados of our SPIVA reports will recognize that most active managers underperform passive benchmarks most of the time.   For example, between 2000 and 2014,  a majority of large-cap U.S. managers beat the S&P 500 in only three calendar years.  The records of mid-cap managers against the S&P MidCap 400 and small-cap managers against the S&P SmallCap 600 are equally undistinguished. Read more […]

Active Funds Win Battles But Lose Wars

There have always been select actively managed funds that beat the cap-weighted indices market, and there always will be. But trying to find these funds before they outperform is exceedingly difficult, especially across multiple asset classes and styles. In addition, the outperformers may not pay well enough given the risk.  Active managers may claim victory Read more […]

The Small Respect it Deserves

Some indices are favorites of mine.  It might be better for me to be agnostic and dispassionate.  But I can’t help myself when it comes to the S&P SmallCap 600.  As far as indices go, size does matter, and in the case of this index, being small comes with quite a bit of swagger. I Read more […]

Who’s in charge of your investments – Captain Kirk or Mr. Spock?

I have a confession – earning the market return minus expenses does not feel very enticing. Reasonably well-run index funds will do just that, and probably land within the 2nd or 3rd performance quartile year in and year out. But is that the best I can do? Where’s the satisfaction? My inner Captain Kirk wants Read more […]