Balancing the Scales in U.K. Equity with the S&P 500
Our recent paper Why Does the S&P 500® Matter to the U.K.? argues that the S&P 500 presents an opportunity for U.K. investors to diversify their revenue exposure and sector weights across geographies. Since British investors typically suffer from a substantial home bias, such diversification presents an opportunity to improve the risk/return profile of a…
2023 GICS Changes: S&P 500 Impact Analysis
GICS® changes are approaching. On Dec. 15, 2022, S&P Dow Jones Indices and MSCI jointly announced a full list of companies affected by the upcoming revisions to the Global Industry Classification Standard (GICS) structure. Although the 2023 GICS changes are not as extensive as the Communication Services sector change in 2018, there are still significant…
A Spider Spins a SPIVA Special
Thirty years ago, Bill Clinton was getting ready for his inauguration as the 42nd U.S. president, the S&P 500® closed a little over 430 and the latest edition of Business Week was trumpeting that 1993 would be “The Year of Picking Wisely” in the stock market. Meanwhile, a different kind of security was about to…
Do Friendly Bears Exist?
“Never sell the bear’s skin before one has killed the beast.” Jean de La Fontaine. On Wall Street, bear markets represent declines of at least 20% from their highs. But on Main Street, bears are anthropomorphized as friendly. Here we look at whether bears can also be “friendly” in financial markets, looking at the S&P…
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
Making a Virtue of Necessity
When the market declines by nearly 24%, as the S&P 500® did in the first nine months of 2022, investors typically lick their wounds and wonder what comes next. Spoiler alert: I don’t know. But there are ample historical data to explore amidst our befuddlement. First, the bad news: Exhibit 1 shows that there is…
Shooting Hoops with Michael Jordan: An Allegory
I am not a particularly good athlete, and perhaps the sport at which I am most inept is basketball. Despite that, let’s assume that I somehow challenge Michael Jordan, arguably the best player in the history of the game, to a free throw shooting contest. What are my chances of success? (Stay with me, I…
S&P U.S. Core Indices Mid-Year 2022: Analyzing Relative Returns to Russell
In Q2 2022, the S&P 500®, S&P MidCap 400® and S&P SmallCap 600® all fell about 15%, continuing the declines from Q1 as of June 30, 2022 (see Exhibit 1). The S&P 500 experienced its worst first half since 1970. Amid the challenging environment, the S&P U.S. Core and Style Indices have generally proved more…
- Categories Equities, S&P 500 & DJIA
- Tags 2022, Canada FA, core, Core U.S. Equities, Equity, Fei Wang, growth, Index Construction, Mid-Year 2022, quality, S&P 500, S&P Composite 1500, S&P Core Equity Indices, S&P MidCap 400, S&P SmallCap 600, S&P Style Indices, S&P U.S. Indices, Style, U.S., U.S. Core, U.S. Equities, United States, US FA, value
- Categories
- Equities, S&P 500 & DJIA
- Tags
- 2022, Canada FA, core, Core U.S. Equities, Equity, Fei Wang, growth, Index Construction, Mid-Year 2022, quality, S&P 500, S&P Composite 1500, S&P Core Equity Indices, S&P MidCap 400, S&P SmallCap 600, S&P Style Indices, S&P U.S. Indices, Style, U.S., U.S. Core, U.S. Equities, United States, US FA, value
Tumultuous Trends
The S&P 500® posted its worst first-half performance since 1970,1 as inflation concerns, Fed rate hikes and slowing economic growth have weighed on markets. Mega caps were hit particularly hard, with the S&P 500 Top 50 posting a loss of 22%, underperforming the S&P 500 by 2%. Exhibit 1 shows that Information Technology was the…
Bearing Through
On Monday, June 13, 2022, the S&P 500® officially entered bear market territory, having lost more than 20% of the value from its peak on Jan. 3, 2022. Just as we didn’t know on Jan. 3 that the market was going to decline, today we don’t know the full extent and duration of the new…
- Categories Equities, S&P 500 & DJIA
- Tags bear market, core, S&P 500, U.S. Equities, US FA
- Categories
- Equities, S&P 500 & DJIA
