18-Year Performance of the S&P/ASX BuyWrite Index
The volatile and unpredictable nature of the stock market is characterized by periods of ups and downs. Covered call option writing is a strategy aimed at generating income and mitigating loss, particularly in bear market environments. A covered call (or “buy-write”) strategy involves selling a call option against an asset that is already owned by…
Examining the Dividend Risk Premium
How do you measure the dividend risk premium on the S&P 500 and why does it make sense to track with an index? S&P DJI’s Michael Mell takes a custom look at indexing dividend futures with Metaurus Advisors’ Rick Silva, and Compass Point Financial’s Andrew Jones.
The Dow Jones Dividend 100 Indices Part 2: Strong Fundamentals and the Benefits of Diversification
In part one of this series, we highlighted how the stringent dividend sustainability and quality screens of the Dow Jones U.S. Dividend 100 Index and Dow Jones International Dividend 100 Index may have led to their outperformance in 2022 and other inflationary periods. In this installment, we will analyze the positive effects that these screens…
Indexing Income: How Are Insurers Diversifying with Dividends?
As insurers face one of the most challenging bond markets in decades, many insurance companies are looking for different ways to generate revenue. S&P DJI’s Raghu Ramachandran and Rupert Watts join State Street Global Advisors’ Ben Woloshin for a closer look at how and why some insurers are implementing indexed-based equity strategies.
The Dow Jones Dividend 100 Indices Part 1: A Focus on Dividend Sustainability and Quality
Looking back, 2022 was an impressive year for passive dividend indices, both with respect to performance and inflows on the back of rising interest rates. The Dow Jones U.S. Dividend 100 Index and Dow Jones International Dividend 100 Index were two of the standout performers, which may be due to their emphasis on strong fundamentals…
The S&P 900 Dividend Revenue-Weighted Index: A Standout Performer in a Challenging Year for Equity Markets
2022 was a difficult year for equity investors as rising interest rates, increasing geopolitical risks and slowing economic growth put downward pressure on equities. However, factors such as dividend yield and value fared much better than the broader equity market due to their shorter durations. Despite this challenging economic environment, the S&P 900 Dividend Revenue-Weighted…
Defending with S&P Dividend Growers
How does constructing high capacity indices focusing on stable dividend growers and excluding potential value traps, tend to lead to higher profitability, reduced volatility, and greater risk-adjusted performance than the benchmark? S&P DJI’s Pavel Vaynshtok, Vanguard’s Janel Jackson, and MJP Wealth Advisors’ Brian Vendig take a closer look at the S&P Dividend Grower Indices.
A Lackluster 2022 for Canadian Equities
With less than two weeks remaining in 2022, the S&P/TSX Composite Index is down 5.7% YTD (a relatively mild decline compared to the S&P 500®’s 17.9% drop). The S&P/TSX Composite Low Volatility Index has underperformed, which is unusual for a down year, falling by 9.6% YTD. Volatility continued its uptrend since the last rebalance, rising…
Examining the Effectiveness of Defensive Strategy Indices
What does history have to say about the effectiveness of factor indices as defensive tools? S&P DJI’s Craig Lazzara explores defense beyond bonds and how defensive factors influence risk/return in different market environments.
- Categories Equities, Strategy
- Tags Craig Lazzara, defensive equities, Defensive indices, defensive strategies, dispersion, Dividend Aristocrats, dividend growers, ETFs, factor indices, factor risk premia, fixed income, low volatility, passive investing, S&P 500 Factors, S&P 500 Quality, Volatility Management
S&P ESG High Yield Dividend Aristocrats Index – Adding a Layer of Sustainability via ESG Screening
High-dividend-yielding stocks have been prevalent in 2022, as rising interest rates have put downward pressure on long duration assets. At the same time, market participants are increasingly seeking to align investments with their personal and societal values. The S&P ESG High Yield Dividend Aristocrats® Index may be a strategy that checks both of these boxes….
