Tag Archives: core
Examining Passive Performance at the Core
How does indexing work for large-cap equities? S&P DJI’s Hamish Preston and State Street Global Advisor’s Michael Arone take a closer look at lessons from 20 years of SPIVA, including fee savings, outperformance, and what the latest GICS® changes mean for sectors and industries moving forward.
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GICS Changes Are upon Us
As time passes, we draw ever closer to the date of the GICS® changes scheduled to take effect after the market close on March 17, 2023. There are five changes being implemented, some of which will move companies among sectors and others that will move companies within sectors. Recent blogs have announced these changes: GICS…
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Balancing the Scales in U.K. Equity with the S&P 500
Our recent paper Why Does the S&P 500® Matter to the U.K.? argues that the S&P 500 presents an opportunity for U.K. investors to diversify their revenue exposure and sector weights across geographies. Since British investors typically suffer from a substantial home bias, such diversification presents an opportunity to improve the risk/return profile of a…
- Categories S&P 500 & DJIA
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Do Friendly Bears Exist?
“Never sell the bear’s skin before one has killed the beast.” Jean de La Fontaine. On Wall Street, bear markets represent declines of at least 20% from their highs. But on Main Street, bears are anthropomorphized as friendly. Here we look at whether bears can also be “friendly” in financial markets, looking at the S&P…
- Categories Equities, S&P 500 & DJIA
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The Importance of Being Indexed
One of the benefits of indexing is its low cost relative to active management. As indexing has grown, investors have benefited substantially by saving on fees and avoiding active underperformance. We can estimate the fee savings each year by multiplying the difference between the average expense ratios of active and index equity mutual funds by…
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S&P U.S. Core Indices Mid-Year 2022: Analyzing Relative Returns to Russell
In Q2 2022, the S&P 500®, S&P MidCap 400® and S&P SmallCap 600® all fell about 15%, continuing the declines from Q1 as of June 30, 2022 (see Exhibit 1). The S&P 500 experienced its worst first half since 1970. Amid the challenging environment, the S&P U.S. Core and Style Indices have generally proved more…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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S&P U.S. Indices Mid-Year 2022: Analyzing Relative Returns to CRSP
The first half of 2022 saw supply chain disruptions, interest rate hikes amid rising inflation and geopolitical tensions sour sentiment, creating a complex environment for equity markets. The S&P 500® was down 20%, which represented the worst start of the year since 1970. What was the impact on other S&P DJI U.S. equity indices and…
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2022, Cristopher Anguiano, equities, Index Construction, index performance, Mid-Year 2022, performance comparison, quality, S&P 500, S&P Composite 1500, S&P DJI U.S. equity indices, S&P MidCap 400, S&P SmallCap 600, S&P U.S. Indices, U.S., U.S. Core, U.S. Core Equities, U.S. Equities, United States, US FA
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- 2022, Cristopher Anguiano, equities, Index Construction, index performance, Mid-Year 2022, performance comparison, quality, S&P 500, S&P Composite 1500, S&P DJI U.S. equity indices, S&P MidCap 400, S&P SmallCap 600, S&P U.S. Indices, U.S., U.S. Core, U.S. Core Equities, U.S. Equities, United States, US FA
Bearing Through
On Monday, June 13, 2022, the S&P 500® officially entered bear market territory, having lost more than 20% of the value from its peak on Jan. 3, 2022. Just as we didn’t know on Jan. 3 that the market was going to decline, today we don’t know the full extent and duration of the new…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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The S&P SmallCap 600 – A Sector-Led Bounce Back
For over 11 years, S&P Dow Jones Indices has been exploring the long-term, persistent outperformance of the S&P SmallCap 600® relative to the Russell 2000. As shown in Exhibit 1, the S&P 600TM has outperformed the Russell 2000 by 1.70% on an annualized basis from Dec. 31, 1994, to Sept. 30, 2021. The S&P 600…
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What Canada Is Missing
Canadian investors have long participated in U.S. equity markets, but are materially underweight in U.S. mid- and small-cap companies. In this respect, Canadians resemble their European counterparts, whose investments in the U.S. rarely range beyond those companies included in the S&P 500®. This underinvestment is surprising for several reasons. European market participants are no stranger…
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