The U.S. Dollar’s Outperformance Makes Its Impact on Indices, Too
U.S. dollar strength has led to parity in EUR-USD exchange rates in recent days, with the value of the euro equaling 99 U.S. pennies at its low. While 114 U.S. pennies were still required to equal the British pound sterling, “cable”—the GBP-USD rate—has reached its lowest since 1985. In Asia, the Japanese yen has suffered…
The Case for Dividend Aristocrats in Pan Asia
During a time of acute monetary policy tightening throughout much of the western world, major Asian central banks have remained relatively more accommodative. In China, the People’s Bank of China cut its key five-year prime loan rate last week1 after cutting it only a few months ago in May. In addition to the looser monetary…
Low Volatility Holds Its Own
If the first six months of 2022 were defined by the woes of equities, the year’s second half has been defined (so far!) by a comeback. Since hitting a low in mid-June, the S&P 500® has gained an impressive 17.1% through Aug. 18, 2022. In such an environment, low volatility strategies are expected to underperform,…
Dividend Growers in Inflationary Environments
With inflation being a major issue in the current economy, consumers are increasingly looking for ways to combat their loss of purchasing power. One way to achieve this is to have sources of income that keep pace with, or even exceed, the inflation rate. Over the past four decades, dividends have played an increasing role…
The S&P Systematic Global Macro Index Outperformed YTD
U.S. equities rebounded in July thanks to earnings from mega-cap technology and major oil companies. The S&P 500® surged 9.2%, posting its best month since November 2020 and reversing its 8.3% loss in June. Nevertheless, the S&P 500 remains in correction territory, down 13.1% from its Jan. 3, 2022, record high. The S&P Systematic Global…
Commodities: Inflation, Interest Rates and the U.S. Dollar
After last week’s highest inflation print in over four decades, the U.S. dollar (USD) rose to its strongest level in 20 years, as measured against a broad basket of currencies. The euro also hit parity with the USD for the first time since 2002 as a consequence of Europe’s front-line exposure to the Russia-Ukraine conflict…
S&P QVM Top 90% Indices: An Examination of the June 2022 Rebalance
This blog is the second in the quarterly blog series we recently introduced to provide transparency into rebalance adds and drops for our S&P Quality, Value & Momentum Top 90% Multi-factor Indices (S&P QVM Top 90% Indices). The S&P QVM Top 90% Indices seek to track constituents in the top 90% of their universe, ranked…
- Categories Factors, Strategy
- Tags factors, institutional investor, momentum, Multi-Factor, multi-factor indices, multi-factor strategy, quality, QVM, S&P 500 QVM Top 90% Index, S&P MidCap 400 QVM Top 90% Index, S&P Quality Value & Momentum Top 90% Multi-factor Indices, S&P QVM Top 90%, S&P SmallCap 600 QVM Top 90% Index, value
The S&P ESG Dividend Aristocrats Index Series: One Year Later
Dividends have historically provided a significant source of returns. A recent blog stated dividends have become an important source of household income for U.S. investors and accounted for 7.3% of personal income as of Q1 2022, climbing from 3.2% in 1980. Over the same period, interest income has declined in share from 16.2% to 9.2%….
Simplicity Yields Outperformance: The S&P 500 Low Volatility High Dividend Index
Last week, the S&P 500® officially entered a bear market, dropping more than 20% from its record close in January. However, not all equity indices suffered comparable losses, and one such example is the S&P 500 Low Volatility High Dividend Index. In fact, this index has outperformed by a wide margin so far in 2022….
Introducing the S&P 500 ESG Dividend Aristocrats Index
Investors are increasingly aspiring to align their investment objectives with their personal and societal values. At the same time, dividends are at the top of investors’ minds, as monetary policies tighten globally and volatility in the financial markets increases. In light of these trends, S&P Dow Jones Indices (S&P DJI) recently launched the S&P 500®…
