Anu Ganti
Senior Director, Index Investment Strategy, S&P Dow Jones Indices
Analyzing Active in Australia: Lessons from the SPIVA Australia Mid-Year 2023 Scorecard
Since 2013, our SPIVA® Australia Scorecards have shown that the majority of actively managed Australian equity funds have typically underperformed the S&P/ASX 200. According to the recently published SPIVA Australia Mid-Year 2023 Scorecard, 55% of Australian Equity General fund managers lagged the S&P/ASX 200 in the first half of 2023. Results for some fund categories…
- Categories Equities, Fixed Income
- Tags 2023, active management, Anu Ganti, Australia FA, Australian bonds, Australian equities, fixed income, global equities, S&P Australia Investment Grade Corporate Bond Index, S&P Developed Ex-Australia LargeMidCap, S&P/ASX 200, S&P/ASX Australian Fixed Interest 0+ Index, SPIVA, SPIVA Australia
- Categories
- Equities, Fixed Income
Towering Tech
The performance of large-cap Technology stocks so far this year has been exceptional, with the S&P 500® Information Technology sector outperforming the S&P 500 by 26% over the six-month period ending June 30, 2023—the 97th percentile of all observations in our database. Tech’s outperformance, driven by mega-cap strength, has been especially notable because of its…
Disentangling Diversification
We frequently hear that “it’s a stock picker’s market.” The recent market environment could equally well be characterized as a sector picker’s market. To measure the importance of sectors, we decompose total market dispersion into within-sector and cross-sector effects. Exhibit 1 shows that the contribution of cross-sector effects to total S&P 500® dispersion has trended…
SPIVA Europe Scorecard 2022: A Challenging Year for Fixed Income, but Not Necessarily for All Fixed Income Managers
For the first time, our SPIVA® Europe Year-End 2022 Scorecard measures the performance of actively managed fixed income funds, covering 11 categories across currencies and credit quality. Fixed income funds had a better record than their equity brethren in 2022, with a majority of funds outperforming in five reported categories over a one-year horizon (compared…
SPIVA Canada Scorecard 2022: Country, Currency and Concentration Contexts
Since 2004, our SPIVA® Canada Scorecards have shown that a majority of actively managed Canadian equity funds typically underperform the S&P/TSX Composite Index. However, according to the recently published SPIVA Canada Year-End 2022 Scorecard, the annual underperformance rate dropped to the best result we have seen since 2015: just 52% of Canadian Equity managers lagged…
Active Ability versus Active Outperformance
Some commentators have argued that today’s market environment—characterized by rising rates and economic growth concerns—is a ripe environment for stock pickers. This argument is conditionally correct, as long as we remember that having the opportunity to add value does not guarantee that value gets added. In today’s environment, active managers have good potential to add…
Why Indexing Can Be Applied to Thematics
Index funds, which hardly existed 50 years ago, now play a prominent role in global financial markets. But passive investing does not dominate in every market segment. Recently, we have seen exponential growth in so-called “thematic” investing, with a proliferation of themes in areas like cybersecurity, robotics and electric vehicles. This more granular space is…
Style, Size, and Skewness
Two of the biggest reversals of 2022 compared to 2021 were the outperformance of smaller caps and the outperformance of value compared to growth. Both of these factors helped drive the S&P 500® Equal Weight Index’s recovery last year, as well as a decline in market concentration. As sector and style exposures are not independent,…
Safe Harbors and Silver Linings
As we reflect on this year’s notable market themes, one trend is certain: it has been a tumultuous market characterized by rate hikes and inflation concerns across regions, with significant losses across asset classes. Crypto market performance added to jitters, with the S&P Cryptocurrency LargeCap Index down 66% YTD. Losses throughout the year culminated in…
- Categories Equities, Fixed Income, S&P 500 & DJIA
- Tags 2022, Anu Ganti, China, emerging markets, fixed income, global equities, IIS, Index Investment Strategy, institutional investor, S&P 500, S&P Emerging BMI, S&P Emerging ex-China BMI, S&P Global 1200, S&P Global BMI, sectors, U.S. dollar, U.S. Equities, US FA
- Categories
- Equities, Fixed Income, S&P 500 & DJIA
Examining Equal Weight
In this tumultuous market characterized by Fed rate hikes, elevated inflation and a strong dollar, mega-cap growth companies have suffered heavy losses, paced by recent “Big Tech” earnings disappointments from Meta, Microsoft, Alphabet, Amazon and others. The S&P 500® Top 50 declined by 19% over the past 12 months, underperforming the S&P 500 by 5%….
- Categories Equities, Factors
- Tags 2022, Anu Ganti, communication services, concentration, equal weight, equities, IIS, Index Investment Strategy, inflation, information technology, institutional investor, interest rates, S&P 400, S&P 500, S&P 500 Equal Weight, S&P 500 Equal Weight Index, S&P 500 Top 50, S&P 600, sector, sectors, U.S. dollar
- Tags
- 2022, Anu Ganti, communication services, concentration, equal weight, equities, IIS, Index Investment Strategy, inflation, information technology, institutional investor, interest rates, S&P 400, S&P 500, S&P 500 Equal Weight, S&P 500 Equal Weight Index, S&P 500 Top 50, S&P 600, sector, sectors, U.S. dollar