Nov 23, 2020

Is South Korea Crowding Your Emerging Markets Allocation?

Key to evaluating core international equity benchmarks is an understanding of the country exposures offered. Developed and emerging market country classification differences between index providers may lead to notable geographic exposure differences across market segments. One of the most meaningful instances of this involves South Korea, which S&P DJI has classified as a developed market…

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Nov 20, 2020

The Market Is Up, But So Is Volatility

So far, 2020 has brought us a global pandemic, a coordinated global economic shutdown, and, in the U.S., a notably contentious election. So it’s no surprise that volatility has been, and remains, elevated. Despite all this, equities have fared reasonably (some would say surprisingly) well, with the S&P 500® climbing 13% through Nov. 19 since…

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Nov 18, 2020

SPIVA® Latin America Mid-Year 2020 Scorecard: Convergence to Underperformance

We recently published our industry-famous SPIVA report for the Latin America region. SPIVA, which stands for S&P Indices Versus Active, analyzes the performance of actively managed mutual funds against their respective category benchmark. In the case of Latin America, S&P Dow Jones Indices began publishing the scorecard in 2014, covering Brazil, Chile, and Mexico. The…

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Nov 13, 2020

Performance of the New S&P Risk-Managed Target Date Indices

In a previous blog, we explored the glide paths of the S&P Risk-Managed Target Date Indices. In this post, we will compare the index construction of the S&P Risk-Managed Target Date Indices with that of the S&P Target Date Indices and examine their performance. Index Construction of the Baseline S&P Risk-Managed Target Date Indices Each…

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Nov 12, 2020

Measuring Innovation: Essential Insights in an Era of Disruption to the Global Economy

Introducing the S&P Kensho Moonshots Index – Next-Generation Innovators Innovation risk ranks as one of the most significant existential threats faced by companies today. The Fourth Industrial Revolution, and the attendant widespread disruption to the global economy, has significantly amplified an already established trend: accelerating change and the ever-decreasing lifespans of companies, or what the…

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Nov 10, 2020

Why Cap Weighting?

Journalists and others occasionally offer comparisons of capitalization-weighted index funds with other weighting schemes. Some of these efforts are more useful than others, but none, in my experience, identify the question that cap-weighted indices were initially designed to answer, and which accounts for their enduring economic significance. That question is, simply put: What is the…

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Nov 9, 2020

Risk-Adjusted SPIVA®: No More Excuses?

For the first time, the SPIVA Europe Mid-Year 2020 Scorecard introduced risk-adjusted performance evaluations of European equity funds. Previously, proponents of active fund management may have criticized the SPIVA scorecard for measuring performance on a return-only basis. They may have argued that this only told one side of the story, and that their abilities should…

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Nov 5, 2020

Is Canada Inadvertently Excluded from Your International Equity Allocation?

For a U.S. investor, developed market exposure outside of the U.S. is a core building block in forming a comprehensive global portfolio. In part because of its status as the world’s first international equity index, MSCI EAFE enjoys a commanding market presence for international equity benchmarks. It also serves as the underlying index for many…

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Nov 5, 2020

What’s Driving Insurance Investments?

Explore the headwinds and tailwinds facing insurers and how these factors are impacting general accounts portfolios. Learn more: https://www.spglobal.com/spdji/en/research/article/etf-transactions-by-us-insurers-in-q2-2020/

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Oct 26, 2020

Large and In Charge? Giant Firms atop Market Is Nothing New.

While the types of businesses most prominent in the market vary through time, the fact that a small subset of companies’ stocks account for an outsized portion of the stock market is not new. Moreover, research suggests these stocks’ best performance might be in the rearview mirror. The takeaway is that relying on well-established investing…

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