Back in mid-February 2020, S&P 500 issues were easily on track to set their ninth annual record for dividend cash payments, as forecasts called for double-digit 2020 returns. By month-end February, 113 issues in the S&P 500, 22% of the index, had increased their dividends, with no cuts (and certainly no suspensions), and Q1 2020 Read more […]
Volatility, dispersion, and correlation are elements of what we’ve elsewhere characterized as The Active Manager’s Conundrum. Active managers should prefer: Low volatility, which is typically associated with higher returns High dispersion, which means a larger payoff for correct stock selections High correlation, which reduces the opportunity cost of a concentrated portfolio The conundrum arises because Read more […]
Why are the market environments most conducive to generating positive absolute returns the least conducive to producing positive relative returns? Explore the active manager’s conundrum with S&P DJI’s Craig Lazzara and Anu Ganti. Read more here: https://spdji.com/research/article/the-active-manager-s-conundrum
Stock markets continue to rally globally, ascending a wall of poor economic data and significant negative sentiment. Concern that current price levels are unjustifiable is widespread: 78% of respondents to the most recent Bank of America Global Fund Manager Survey believe that the market is overpriced, the highest level since the survey began in 1998. Read more […]
Target date funds have seen tremendous growth. At the end of 2019, assets in target date mutual funds reached nearly USD 1.4 trillion, impressive growth from USD 256 billion a decade ago.[1] Other than a brief dip in the fourth quarter of 2018, the growth of assets has been fairly stable with an upward trajectory Read more […]
In March, COVID-19 inspired volatility roiled markets across the globe. Similarly, the volatility of the S&P/TSX Composite also jumped. The increase, however, was not balanced across all sectors. We see this manifested in the most recent rebalance for the S&P/TSX Composite Low Volatility Index. Effective after the close of trading April 24, 2020, Exhibit 1 Read more […]
Sectors and factors are different ways of viewing the world, but they are not mutually exclusive. We find an example of such a close, symbiotic relationship between the technology sector and the quality factor. Exhibit 1 shows that the S&P 500 Information Technology index has a strong tilt towards quality, while the biggest overweight in Read more […]
Do the S&P 500 High Yield Dividend Aristocrats provide durability during times of distress? S&P DJI’s Anu Ganti explains how dividend growers are positioned for the current climate. Learn more here https://www.indexologyblog.com/2020/04/30/durability-during-distress/
The world looks much different than it did three months ago. Since then equities hit their all-time peak, entered a bear market, exited a bear market, and currently sit 15% off peak with sustained higher volatility levels. The latest rebalance for the S&P 500 Low Volatility Index®, effective after the close of trading today, rotated Read more […]
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