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Aug 8, 2022

Infrastructure to Strengthen a Portfolio in Volatile Times

Key Observations: Infrastructure owners and operators provide real asset exposure in inflationary environments Opportunities for yield on infrastructure continue to be relatively strong Infrastructure companies have delivered consistent operating margins over time How can investors power through the rising inflation, low real yields and sluggish profits in today’s volatile markets? The answer may be pure-play…

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Jul 28, 2022

Schrödinger’s Carbon: Intensity and Paris Alignment

In quantum mechanics, Schrödinger’s Cat refers to the paradoxical consequences of a thought experiment: can a cat be simultaneously dead and alive? A similarly counterintuitive phenomenon can be found in the context of climate-based analysis: whereby an index may boast a relatively low carbon intensity and yet, perhaps surprisingly, not be judged as aligned with…

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Jul 19, 2022

A Risk Control Approach to Cryptocurrencies: A Tool for a Crypto Winter

Earlier this year, we reported on the volatility of Bitcoin and cryptocurrencies overall. In February 2022, the market was slightly down from its all-time high in November 2021. S&P Dow Jones Indices had just launched the new S&P Bitcoin and Ethereum Dynamically Rebalancing Risk Control 40% Indices (CET Close), and we saw that risk-adjusted performance…

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Jul 13, 2022

Does the Wisdom of the Crowd Hold for the S&P 500 Twitter Sentiment Indices?

As financial conditions have tightened materially since the start of the year and pressure is mounting on the U.S. equity market, it is worth circling back to see how the “wisdom of the crowd” has held up. Specifically, does a sentiment indicator derived from Tweets on Twitter hold as an informative investable factor? It’s been…

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Jun 23, 2022

Data Driving the Weights within the S&P 500 Net Zero 2050 Paris-Aligned ESG Index

The World Meteorological Organization estimates that there is a 50% chance that global warming will exceed 1.5°C before 2026.1 The International Panel on Climate Change has warned that time is running out—climate change is no longer a problem for the future, and its associated physical risks are materializing more evidently.2 The world may need to…

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May 18, 2022

Emerging Market-Listed Companies Enter the S&P Global Clean Energy Index

In October 2021, the S&P Global Clean Energy Index implemented most of the items addressed in the August 2021 consultation, which improved transparency, reduced the index’s carbon footprint and better aligned the index methodology with market trends.1 The latest rebalance (effective April 25, 2022), was a continuation of that consultation, with a focus on diversification…

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May 17, 2022

The (Re)Balancing Act of the S&P 500 ESG Index

It is that time of year yet again: the seasons are changing, spring is in the air and the S&P 500® ESG Index has undergone its fourth annual rebalance. Just as it has in years past, the changes of the 2022 rebalance reflect the delicate balancing act of providing for broad-based market exposure but with…

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May 17, 2022

Perspectives on the Current Crypto Slump

I’ll avoid the usual platitudes about the market downturn. Instead, I’d like to focus on how we can better understand the current cryptocurrency market movement by looking at the S&P Cryptocurrency Indices. First, to set the context for the current drawdown, we’ll take a look at the biggest declines in Bitcoin. Then, we’ll take a…

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May 4, 2022

Why a Bitcoin Index

Since the launch of the S&P Cryptocurrency Indices in 2021, we often get asked about the difference between a price (more formally known as a reference rate) and a single-coin index. So, let me unpack this into three questions: What is a reference rate? What is a single-coin index? And especially, why is it different…

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May 3, 2022

ESG in Australian Strategies: How Does It Look?

The world of sustainable investing, better known for incorporating environmental, social and governance (ESG) criteria into what was before mostly financially driven investment decision-making, seems to be here to stay. As ESG index investing continues to evolve, so does our suite of ESG indices—expanding both in terms of methodologies and regions covered. Australia is no…

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