In the second blog of this series, we saw that the S&P 500® Low Volatility Rate Response generally achieved similar levels of volatility reduction as the S&P 500 Low Volatility Index. In our paper Inside Low Volatility Indices (published in 2016), the low volatility index historically outperformed the S&P 500 during severe market downturns (Exhibit Read more […]
As advisors begin mid-year rebalancing of client portfolios, they face a dilemma. While investors have enjoyed a 9-year Bull Market—including a 21.14% total return by the S&P 500 in 2017—their investment portfolios have built up more equity risk. Absent rebalancing, a standard 60/40 equity/bond portfolio might now resemble a riskier 75/25 allocation. Given these sizable Read more […]
In a previous blog post, I described some benefits of having an income goal and a method of estimating one’s retirement income liability. I reviewed a hypothetical example to illustrate steps 1-2 from the list of benefits below, and I calculated a net estimated retirement liability (the portion of retirement income one must fund with Read more […]
In a prior post, we saw that during sharp rising interest rate periods, the S&P 500® Low Volatility Rate Response fared better than the S&P 500 Low Volatility Index, even though both indices generally underperformed the S&P 500. In this post, we examine if there is a relationship between the magnitude of interest rate changes Read more […]
“Not enough progress has been made in closing the gender gap, and in fact, in some countries, you have seen gender inequality increasing…” – Ángel Gurría, secretary-general of the Organization for Economic Cooperation and Development (OECD). This was the opening of a recent speech at #WomenRule by Politico on a paper newly published by S&P Read more […]
Sovereign bonds remain largely unanalyzed by investors from a carbon risk and reporting perspective. This is despite clear acknowledgement in the Paris Agreement that governments have a critical role in curtailing global warming,[1] and the Financial Stability Board’s warning that climate change could affect all asset classes and the stability of the broader financial system.[2] Read more […]
We recently launched the monthly U.S. S&P Select Industry Dashboard, which provides key metrics, analysis of correlation and dispersion, and historical risk/return data for 20 investable select industry indices. The dashboard is a natural extension of our U.S. Select Sector Dashboard, which provides analysis for investable sectors across the large-, mid-, and small-cap ranges. For Read more […]
The value factor looks to bucket stocks that have inexpensive valuation and trade at a discount to their fundamental value, with the hypothesis that inexpensive stocks should outperform overvalued stocks. Observations in empirical research suggested that the value factor performed best when the economy was in recovery and growth was accelerating from trough.[1] We recently Read more […]
In late April 2018, the Department of Labor’s (DOL) Office of Regulations and Interpretations issued the Field Assistance Bulletin No. 2018-01, clarifying guidance on how investment managers should interpret the DOL’s prior Interpretive Bulletins (IBs) issued in 2015 and 2016. Issued during the Obama administration, the IBs detail the exercise of shareholder rights, written statements Read more […]
Companies that act now to invest in low carbon technologies have the chance to maintain their license to grow and avoid carbon pricing costs that would significantly reduce profits. For example, in 2020, the technology sector’s investments in energy efficiency for their U.S. data centers could avoid over USD 6.9 billion in carbon costs and Read more […]
