Positioning for Market Volatility Using Passive Strategies

Fluctuating periods of “risk-on” and “risk-off” mean that spikes in equity market volatility and large drawdowns are increasingly common in today’s economy. Exhibit 1 shows events throughout the current market cycle causing notable rises in volatility and large drawdowns. With more of these likely in the future, as our long bull market cycle ages, how Read more […]

Commodities Performance Highlights – March 2019

It has been a noteworthy start to 2019 for commodities. The S&P GSCI was up 1.6% in March and up 15.0% YTD. The performance of the Dow Jones Commodity Index (DJCI) was more modest in March, up 0.1%, and it was up 7.5% YTD, reflecting its lower energy weighting. Petroleum prices were the standout driver Read more […]

Using the S&P/JPX Dividend Aristocrats® to Invest in Japanese Dividend Growers

While some dividend-paying companies give out occasional and unsustainable dividends, dividend-growing companies—such as household names like Coca-Cola, Exxon Mobile, and AT&T in the U.S.—provide steadily increasing dividend payouts every year. These long-standing dividend growers are called “Dividend Aristocrats,” and there are two reasons for it. First, with successful business operations and disciplined financial management, they Read more […]

S&P 500® Has Best First Quarter in over 20 Years – But Upward Momentum Slows

The S&P 500 finished Q1 2019 up 13.07%. This was the best first quarter return since the 13.53% posted in Q1 1998. January’s 7.87% return was the best start to the year since 1987 (13.18%). The hot start cooled some with the 10th-best February since 1987, at 2.97%. In March, the upward momentum slowed further, Read more […]

Using GARP Strategies for Indices Part II – Constituent Selection

In a previous blog, we took the first and second steps in our Growth at a Reasonable Price (GARP) strategy construction. We introduced the GARP investment strategy and showed how it can be implemented systematically. In this blog, we will take the third and fourth steps: using a multi-factor sequential filtering process for security selection Read more […]

Financial Advisers’ View on the Australian ETF Market

At the recent Australian Indexing & ETF Masterclass series held in Melbourne & Sydney, we asked the audience, 83% of whom were Financial Advisers, a number of questions using a mobile-enabled polling tool. Over 260 people attended the Masterclass across the two cities, and 189 of these people used the polling tool. 767 discrete votes Read more […]

Are You Ready for China A-Share Inclusion?

In case you missed our country classification announcement on Dec. 5, 2018, we will be starting the process of adding China A-shares to S&P DJI global benchmarks (including the S&P China BMI and S&P Emerging BMI) in September 2019 at a partial inclusion factor of 25%. Given the size of China’s onshore equity market, the Read more […]

Can You Beat the Market Consistently?

Our SPIVA® readers often ask what percentage of outperforming funds goes on to beat the market over the following years. Our latest research report, Fleeting Alpha: The Challenge of Consistent Outperformance, answers that exact question in detail. In this blog, we demonstrate the difficulty and likelihood of consistently outperforming a benchmark. Using trailing three-year returns Read more […]

Using GARP Strategies for Indices

In this blog (and three subsequent posts) we will explore using Growth at a Reasonable Price (GARP) principles for investment in indices. GARP is a well-known, much-practiced, fundamental-driven investment strategy. It seeks to balance between the pure growth strategy and pure valuation strategy, as the former tends to chase high growth yet expensive stocks, while Read more […]

Key Takeaways from 2019 Australian Indexing & ETF Masterclass

In early March over 265 financial advisers came together in Melbourne and Sydney for S&P Dow Jones Indices’ 9th Annual Indexing and ETF Masterclass. This half day Masterclass provided advisers with the opportunity to hear from, and interact with, both local and international peers, S&P DJI subject matter experts, as well as leaders in the Read more […]