In our research paper titled, Profitability Screening in Australian Small Caps, we examined the effectiveness of a profitability screen on improving return as well as reducing volatility and drawdown for Australian small-cap stocks. Adhering to these principles, the S&P/ASX Small Ordinaries Select Index was launched on Dec. 21, 2018, to track profitable small-cap companies in Read more […]
In partnership with the ASX, we recently introduced the S&P/ASX All Technology Index, which, for the first time, brings together ASX-listed companies across a range of industries whose businesses are primarily technology focused. In a market heavily concentrated in banks and natural resource companies, the S&P/ASX All Technology Index provides access to a unique, underrepresented Read more […]
The core-satellite approach splits a portfolio into two parts: the main part, called the core, and a much smaller portion, called the satellite. The core generally consists of “boring” but steady long-term performance (often index funds tracking market portfolios), while the satellite can be anything that could complement the core with risk diversification, outperformance potential, Read more […]
The S&P/ASX 200, widely considered a performance barometer for the Australian equities market, comprises 200 of the most liquid and highest market capitalization stocks listed on the Australian Securities Exchange (ASX). Nevertheless, the performance of this index is not solely influenced by Australian economic activities, but also by global economic conditions, depending on the individual Read more […]
With the dust still settling after the unexpected result of Australia’s recent federal election on May 18, 2019, which resulted in a third 3-year term for the incumbent Liberal-National Party coalition, the Australian government has quickly turned its attention to a slowing in the Australian economy. While the uncertainty over franking credit refunds and negative Read more […]
Australian Listed Equities The Australian listed equity market has two characteristics not to be overlooked when constructing a domestic index: its relatively small number of stocks and relatively large exposures to a few specific sectors. These factors alone often mean that the application of a specific indexing methodology can produce more pronounced effects Read more […]
The S&P/ASX Australian Index Series has played a significant role in characterizing the Australian equity market performance since its inception in April 2000. Since then, the S&P/ASX 200 has served as the foundation for benchmarks and index-based investing strategies from sectors to quality, value, and momentum factor approaches. Following the launch of the Read more […]
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 […]
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 […]
I spent a recent weekend at the Self-Managed Superannuation Fund (SMSF) Expo talking to SMSF trustees about indices. While I often spend Monday through Friday talking indices, to spend Saturday and Sunday chatting about indices was something new. The SMSF Association hosted the first SMSF Expo in Australia, attracting over 1,500 people over the three-day Read more […]