Using Index Icons to Track Potential Equity Opportunities
How are investors using the S&P 500 and DJIA to measure and assess potential opportunities in U.S. equities? Garrett Glawe and Jason Ye of S&P DJI join Michele Barlow of State Street Global Advisors to explore how investors are putting these index icons to work in Asia. Learn more: https://www.spglobal.com/spdji/en/education/article/comparing-iconic-indices-the-sp-500-and-djia/
Indexing to Stay in Front of the Futures Curve
How could a dynamic approach to index design help market participants address negative roll yields and volatility concerns? S&P DJI’s Jim Wiederhold and Kelsey Stokes join BlackRock’s Chris Milliken for a closer look at the S&P GSCI Dynamic Roll.
Risk Parity 2.0 Performance Review
In our two previous blogs on risk parity 2.0 (see here and here), we covered the philosophy and methodological differences between the original S&P Risk Parity Indices and the newly launched S&P Risk Parity 2.0 Indices. This third and final installment of this series now looks at the performance and attribution statistics of the S&P…
Boston Marathon Can Teach Us about the S&P 500 ESG Index Methodology
Today is the 125th Boston Marathon—a big day in the world of distance running. Organized by the Boston Athletic Association (BAA), it is perhaps the pre-eminent annual event on the global marathon calendar. The 20,000 runners in today’s race were selected in May 2021, around the same time S&P DJI rebalanced the constituents of the…
- Categories ESG
- Tags ESG. Boston Marathon, S&P 500 ESG Index, sustainability
- Categories
- ESG
Sparks Are Flying in the Energy Complex
The broad-based S&P GSCI started Q4 2021 off with a bang; as of October 5 it was up 3.9% for the month and 44% YTD. The spot version of the index has reached its highest level since October 2014. Natural gas and the petroleum complex have continued their dominance of the commodity charts, filling out…
- Categories Commodities
- Tags brent crude, commodities, electricity, energy, gas, natural gas, real assets, S&P GSCI
- Categories
- Commodities
Breaking the Market Cap Weight with an Index
When people talk about indexes, they are usually referring to market-cap weighted indexes. Market-cap weighting is based on price and outstanding number of shares. One simply takes the number of shares outstanding and multiplies them by the share price to arrive at market cap. This calculation results in the biggest companies commanding the largest weights….
S&P Risk Parity 2.0 Index Methodology Highlights
This blog is the second in a three-part series introducing the S&P Risk Parity 2.0 Indices. The first blog highlighted the differences between these new indices and the original ones. In this installment, we will take a closer look at the methodology of the newly launched S&P Risk Parity 2.0 Index Series. Constituent Changes Incorporating…
The S&P GSCI Was Energized in September
The S&P GSCI, the broad commodities benchmark, rose in September by 6.0%. Energy-related commodities were the outperformers on the back of what may prove to be a lasting global energy supply crunch. Agriculture and metals were mostly lower over the month. Record natural gas and electricity prices in Europe, record coal prices in China, multi-year…
Why Benchmarks Matter
I recently had the pleasure of participating in a webinar on the basics of passive management. A portfolio manager in the audience posed an important question which I’ll paraphrase: “If my goal is to earn a return of X%, why is an index’s performance relevant?” Otherwise said, if I want to earn a particular absolute…
Investing in Real Estate: Global Diversification using a Quantitative Rules-Based Index
A question… Take five major asset classes: U.S. stocks, international stocks, long-term government bonds, Treasury Bills, and REITs. If their respective compound rate of return over the past two decades is compared, which would come in highest? Stocks? Maybe bonds as they’ve ridden yields down to near zero? Nope. REITs win the day. If returns…
