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Jul 27, 2021

Has the Illiquidity Trade Run its Course?

S&P Global Market Intelligence’s Lynn Bachstetter explores whether illiquidity still has a place in insurance investments with S&P Global Ratings’ Carmi Margalit, F&G’s Leena Punjabi, and BlackRock’s Peter Gailliot.

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Jul 27, 2021

Strength of Savings

In the 20 years ending in 2020, 94% of all large-cap U.S. managers lagged the S&P 500®. Mid- and small-cap results were almost equally disappointing. A notable consequence of these shortfalls in active performance has been the rise in passive investing, one of the most significant trends in modern financial history. Our recent Annual Survey…

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Jul 27, 2021

A Hypothetical Look at 35 Years of Indexes that “Buy” SPX Options

35 Years of Hedging Indices Below are three Cboe S&P benchmark indices that theoretically “buy “SPX put options as part of their index methodology and have 35 years of back-tested performance history going back to June 30, 1986.  As shown below, the three options indices were introduced in either 2008 or 2015, and the data…

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Jul 26, 2021

High-Capacity Construction: The S&P Dividend Growers Indices

In our past blog, Introducing the S&P Dividend Growers Indices, we highlighted the key objectives and investment rationale behind the S&P U.S. Dividend Growers Index and S&P Global Ex-U.S. Dividend Growers Index. We showed that companies that have consistently increased dividends over consecutive years displayed greater financial strength through being generally more profitable with less…

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Jul 26, 2021

A Hypothetical Look at 35 Years with Indices That Use SPX Index Options

Four Option Benchmark Indices In order to assess how hypothetical options strategies performed in various market regimes over the past 35 years, investors use some or all of these four key benchmark indices that sell S&P 500 options as part of the their index methodology and that have histories going back to June 30, 1986….

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Jul 22, 2021

The S&P 500 and DJIA: Divergent Paths to Similar Results

The S&P 500® and the Dow Jones Industrial Average® (DJIA) are two of the best known and most used indices in the world. They are both designed to represent U.S. large-cap companies. As we detailed in a recent paper, the S&P 500 and DJIA have similar long-term risk/return profiles. As of April 30, 2021, the…

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Jul 22, 2021

Understanding the Basics of Sustainability Part 2: Focusing on Net Zero

The increasing focus on sustainability inclusion is being reflected through the markets’ growing recognition of the financial materiality and impact of ESG issues on corporate balance sheets. Therefore, the range of ESG offerings has expanded to include indices that focus on climate change, carbon efficiency, fossil fuel free, and thematics, which include clean energy and…

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Jul 19, 2021

Using Market Fluctuations to Unlock Opportunity

Volatility often represents uncertainty, but it could also signal opportunity. Take a closer look at how the systematic design of the S&P 500 Dynamic Participation Index may help market participants identify and reflect potential opportunities inside the daily price fluctuations of the S&P 500.

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Jul 19, 2021

Tilting Toward Sustainability with the S&P/NZX 50 Portfolio ESG Tilted Index

As they begin their journey in environmental, social, and governance (ESG) investing, many market participants are realizing that there are multiple ways in which an index methodology can incorporate ESG characteristics. Some strategies will look to screen out particular industry groups or companies participating in various business activities, while other strategies will make relative adjustments…

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Jul 15, 2021

Latin American Equities Post a Strong Second Quarter, as Economic Activity Starts to Bounce Back

What a difference a year makes. Latin American equities had a strong Q2, outperforming most regions, as the S&P Latin America BMI gained 15.7%. As of June 2021, the index had its best 12-month return since June 2007, gaining 46.6%. More than a year after the COVID-19 pandemic wreaked havoc on the global economy and…

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