The U.S. Dollar’s Outperformance Makes Its Impact on Indices, Too
U.S. dollar strength has led to parity in EUR-USD exchange rates in recent days, with the value of the euro equaling 99 U.S. pennies at its low. While 114 U.S. pennies were still required to equal the British pound sterling, “cable”—the GBP-USD rate—has reached its lowest since 1985. In Asia, the Japanese yen has suffered…
Value’s Resurgence in the S&P/ASX 200
Those who implement style investing will have noticed a recent reversal of fortunes for the value approach following a long spell of underperformance. Since the inception of the S&P/ASX 200 Growth and S&P/ASX 200 Value in 2017, the back-tested approach has seen growth top value in 12 out of the past 17 calendar years. However,…
Tracking Trends with Indices
How can indices help investors understand what’s driving market trends amid inflation, rising rates, and volatility? S&P DJI’s Anu Ganti and Hamish Preston take a closer look at key trends and what they could mean for active management and asset allocation moving forward.
Equity Woes Continue
Canadian equities continued their decline, losing another 8.76% (through September 15, 2022) since the last rebalance of the S&P/TSX Low Volatility Index on June 17. Characteristically for a falling market, Low Volatility outperformed (by 13 basis points), declining 8.63%. As it had done in June, volatility again increased for every sector of the S&P/TSX Composite…
Defense and Volatility
As the equity market has waned and waxed in 2022, investor interest has naturally turned toward ways of mitigating portfolio losses. Some factor indices can serve this goal, but investors searching for a defensive strategy need to define their search carefully. It’s natural to think that defensive strategies will be less volatile than the market…
Indexing the Performance of the E-Commerce Ecosystem
Introduction to the E-Commerce Ecosystem E-commerce is the abbreviation for electronic commerce, which is the purchasing and selling of goods and services, or the transmitting of funds or data, using the internet for the whole or part of a transaction. Usually, sellers utilize e-market platforms to open online storefronts, and buyers use the platform to…
The Power of Style
At some risk of oversimplification, the 16.1% decline in the S&P 500® for the first eight months of 2022 can be divided into three intervals, as the market fell by 20.0% through June, rallied in July, and then resumed its decline in August. This story, of course, is still evolving: for all we now know,…
SPIVA Institutional and the Pharaohs of Finance
Ptolemy I (367 BC-282 BC), one-time companion of Alexander the Great and later pharaoh of Egypt, has an important role in intellectual history. Among other contributions, he is credited with founding the library at Alexandria, one of the seven wonders of the ancient world, and for personally sponsoring the work of Euclid, a mathematician whose…
Tucking in to the SPIVA Australia Mid-Year 2022 Scorecard
The semiannual S&P Indices Versus Active (SPIVA®) Scorecard1 measures the performance of actively managed funds against their corresponding benchmarks in various markets around the world. The latest Australian edition, the SPIVA Australia Mid-Year 2022 Scorecard, provides a number of interesting insights about the performance of active versus passive across active fund categories. Although the long-term…
- Categories Equities, Fixed Income
- Tags 2022, Active, active management, Active vs. Passive, ASX, Australia, Australian bonds, Australian equities, Benedek Voros, IIS, Index Investment Strategy, Mid-Year 2022, Passive, passive investing, REIT, S&P Developed Ex-Australia LargeMidCap, s&p/asx 200, S&P/ASX 200 A-REIT, S&P/ASX Australian Fixed Interest 0+ Index, S&P/ASX Mid-Small, SPIVA, SPIVA Australia
- Categories
- Equities, Fixed Income
- Tags
- 2022, Active, active management, Active vs. Passive, ASX, Australia, Australian bonds, Australian equities, Benedek Voros, IIS, Index Investment Strategy, Mid-Year 2022, Passive, passive investing, REIT, S&P Developed Ex-Australia LargeMidCap, s&p/asx 200, S&P/ASX 200 A-REIT, S&P/ASX Australian Fixed Interest 0+ Index, S&P/ASX Mid-Small, SPIVA, SPIVA Australia
Net Zero: Time Is of the Essence
This blog was co-authored by Reid Steadman and Fred Samama. At Glasgow’s COP26, banks, insurers and investors representing USD 130 trillion in private capital made a historic commitment through the Glasgow Financial Alliance for Net Zero (GFANZ) to achieve net zero emissions by 2050 at the latest,1 mirroring government pledges. The question remains how to…
