S&P DJI’s Global Islamic Equity Benchmarks Rose 13% in H1 2024, Outperforming Conventional Benchmarks
Global equities extended their upward trend into Q2 2024 on the back of sustained economic growth and moderating inflation. The S&P Global BMI posted a healthy 10.4% return in the first half of the year, led by the U.S where the S&P 500® had an impressive run with a 15.3% gain and new record highs….
Of Tariffs Tango and Manufacturing Moves
It’s well known that as the U.S. consumer goes, so goes its economy. Various estimates suggest that around 67% of U.S. GDP depends on consumer spending. At the macro level, all this consumer spending translates into the consumption of goods and services. The U.S. economy, like most developed economies, comfortably falls into the category of…
The Ethics of Artificial Intelligence
The ever-evolving artificial intelligence (AI) landscape has generated excitement, interest and investment; it has also triggered important questions regarding AI’s impact on businesses, on investment portfolios, on society and on the environment. When factoring in elements such as the high energy requirements of training large language models (LLMs), direct and indirect emissions and the diversity…
The Role of Indices in the Energy Transition Progression – H1 2024 Review
Even though the performance of clean energy-related companies has recently faced some headwinds due to rising interest rates and inflationary pressures, the clean energy industry is still being driven by continuous policy support. As we approach the midpoint of 2024, we wanted to review the S&P Global Clean Energy Index Series rebalance from April and…
A Hidden Stairway to Net Zero
“Yes, there are two paths you can go by, but in the long run There’s still time to change the road you’re on.” —Jimmy Page and Robert Plant Many observers assume indices targeting broad ESG performance follow different paths than those delivering climate-focused temperature alignment. In reality, data show that modern indices can often achieve…
S&P DJI’s Global Islamic Equity Benchmarks Rose 9% in the First Quarter, Extending Outperformance against Conventional Benchmarks
Global equities had a strong start to the year as economic resilience and diminishing recession fears boosted risky assets overall. The S&P Global BMI surged 7.8% in the first quarter, led by developed markets; notably, the S&P 500® finished the quarter up 10.6%, at a new record high. Shariah-compliant global benchmarks beat their conventional counterparts,…
U.S. Sector Relevance to China
Chinese investors tend to exhibit high exposures to domestic equities. Incorporating U.S. equities could help Chinese investors diversify their strategies and alleviate home-country bias. For example, the S&P 500® may be relevant for exposure and sensitivity to the U.S. economy. Additionally, market participants seeking to offset domestic equity biases or express tactical views may wish…
Magnificent Mid Caps and Sensational Small Caps
U.S. equities rose in 2023, with the mega-cap “Magnificent Seven” driving most of the S&P Composite 1500®’s 25% gain. While mega caps continued to outperform in January 2024, not all seven of the aforementioned group ranked highly. This has led to some market commentators looking to coin new phrases: “Sensational Six” or “Super Six” (the…
Getting to Know the S&P Developed BMI Select Aerospace & Defense 35/20 Capped Index
The S&P Developed BMI Select Aerospace & Defense 35/20 Capped Index seeks to measure the performance of constituents from the S&P Developed BMI that are classified in the GICS Aerospace & Defense sub-industry, while adhering to certain size and liquidity criteria. It uses a capped float-market-capitalization-weighted methodology to ensure diversification across its constituents. It is…
The S&P Dividend Aristocrats Remain Benchmark Beaters in Pan Asia
While most dividend strategies underperformed their respective benchmarks in 2023, the S&P Pan Asia Dividend Aristocrats® impressively outperformed the S&P Pan Asia BMI by approximately 3.50% (see Exhibit 1). Furthermore, despite the outperformance, the S&P Pan Asia Dividend Aristocrats’ valuations and dividend yield remained favorable relative to the benchmark (see Exhibits 3 and 4). This…
