Big Sector Shifts in Low Volatility Composition

In March, COVID-19 inspired volatility roiled markets across the globe. Similarly, the volatility of the S&P/TSX Composite also jumped. The increase, however, was not balanced across all sectors. We see this manifested in the most recent rebalance for the S&P/TSX Composite Low Volatility Index. Effective after the close of trading April 24, 2020, Exhibit 1 Read more […]

Symbiotic Sentiments

Sectors and factors are different ways of viewing the world, but they are not mutually exclusive.  We find an example of such a close, symbiotic relationship between the technology sector and the quality factor.  Exhibit 1 shows that the S&P 500 Information Technology index has a strong tilt towards quality, while the biggest overweight in Read more […]

Sector Spotlight: Healthcare in India

Is Healthcare providing a potential opportunity for Indian investors? Explore recent sector performance with S&P DJI’s Koel Ghosh and see how India’s Healthcare sector stacks up to broader markets. Read more here: https://www.indexologyblog.com/2020/05/11/covid-19-revelations-health-care-is-wealth/

VIX Back to Normal? Not Really

The U.S. equities market had a wild start in 2020. Following the March 2020 sell-off, the S&P 500® posted its largest monthly gain (12.8%) since 1987. Meanwhile, VIX® went from its long-term median to an all-time high within a month before it settled around 30. One thing that has been debated lately is whether VIX, Read more […]

Outcome-Oriented Solutions: Where Active and Passive Meet

What do presidential debates and an argument between passive and active investors have in common? They are both thrilling, demand the highest levels of rhetorical skills, don’t change audience opinions, and everyone goes home entertained. While presidential debates remain as exciting as ever, the shrillness of conversation between active and passive investors seems to have Read more […]

Is Alpha Generation a Zero-Sum Game in Indian Large-Cap Equities?

Globally, as markets have matured, we have seen the institutional share of public equity increasing.[1] Professional managers are continuing to enter the investment management industry, resulting in market research becoming more institutionalized. Hence, more and more industry research analysts are competing against each other and chasing the same set of stocks to generate alpha (or Read more […]

Do Management Fees Outweigh the Alpha Generated in Indian Equity Large-Cap Funds?

Without Fees, Do Active Managers Outperform their Benchmarks? The SPIVA® India Year-End 2019 Scorecard shows that, over longer horizons, a large proportion of active funds underperform their respective category benchmarks (see Exhibit 1a). The SPIVA India Year-End 2019 Scorecard evaluates the performance based on net-of-fees returns (i.e., gross returns less the management fees). But do Read more […]

Q1 2020 Australia SPIVA® Results – Outperformance Still Prevalent Despite Market Volatility

In early March 2020, S&P Dow Jones Indices released the SPIVA Australia Year-End 2019 Scorecard. With the market gyrations in late February and March due to the COVID-19 pandemic spreading across the globe, we decided to provide a “mid-term” SPIVA update to include data up to March 31, 2020, and to share the timely results Read more […]

Move over Millennials: ESG Investing Is a Multigenerational Conversation

The COVID-19 pandemic has shaken financial markets and led many market participants to take a closer look at their investments. While emotionally and psychologically challenging, these selloffs can create opportunities to enhance long-term portfolio objectives. In this environment, advisors can demonstrate their value by helping clients invest in strategies they find meaningful and motivating. Investors Read more […]