Tag Archives: diversification
Anchoring Equity to Economic Activity: The Power of Revenue Weighting
Market-cap-weighted indices like the S&P 500® that offer a broad measure of the market have long served as the foundation of passive investing. With valuations at elevated levels and sector concentration—particularly in technology—near historic highs, we examine alternative weighting methods that may provide broader and complementary views. Revenue weighting offers a complementary approach: by weighting…
- Categories Factors
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The Taiwan Paradox: Balancing Concentration Risk with Global Diversification
Few economies are as deeply embedded in the global technology supply chain as Taiwan. Its highly sophisticated chip manufacturing network benefits from demand across a broad range of high-value end markets, from AI infrastructure and data centers to smartphones and electric vehicles. This positioning has propelled the S&P Taiwan BMI to an average annualized gain…
- Categories Equities
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- Categories
- Equities
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Navigating Fixed Income in a Changing Market: S&P/ASX iBoxx Australian & State Governments 0+ Index
How is innovative index construction supporting investment decisions in a shifting interest rate environment? S&P DJI’s Jessica Tan sits down with industry experts to share insights on how market participants can better navigate uncertainty and uncover new opportunities in fixed income through index-based strategies.
- Categories Fixed Income
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Beyond Mega Caps: Navigating Concentration and Diversification in Crypto Index Construction
Cryptocurrency investing straddles two seemingly contradictory truths: market leadership changes fast, yet overall exposure remains dominated by a handful of top assets. From 2018 to 2025, Bitcoin and Ethereum—two mega caps¹—held a combined average weight of 78% in the S&P Cryptocurrency Broad Digital Asset (BDA) Index, while the top five constituents made up roughly 86%…
- Categories Thematics
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- Thematics
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Beyond Borders: The Significance of the S&P 500 in Options-Based Strategies
In the U.S. market, options-based ETFs have experienced exponential growth in recent years, with total assets reaching USD 245 billion as of December 2025. These strategies have been increasingly adopted as mainstream tools in portfolio construction, offering more predictable outcomes and income diversification. Other regions are catching up with this trend at varying rates, with…
- Categories Multi-Asset
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- Multi-Asset
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Indexing Modern Income: Covered Calls Uncovered
Capital markets offer several primary sources of income to investors, including money market interest, bond coupons and stock dividends. Alternative sources of income abound and, most recently, innovation within the exchange-traded fund (ETF) industry has introduced options-based income strategies to a wider range of market participants. In the U.S., investors both large and small have…
- Categories Multi-Asset
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Why Do U.S. Equities and the S&P 500 Matter in South Korea?
S&P DJI’s Sue Lee examines the importance of the S&P 500 in the global equity opportunity set, key diversification and sector composition differences between notable U.S. equity and Korean benchmarks and the challenges faced by active managers in the U.S. and South Korea to outperform this iconic index.
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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Fashionably Late Cycle: The S&P 500 Market Leaders Index
The late-cycle economy is defined as the final phase of the macroeconomic cycle when economic activity hits its peak. The period is characterized by high but slowing growth, rising inflation that may affect profit generation, a tight labor market and volatility in interest rates. Given these conditions, many market participants are considering how best to…
- Categories Factors
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The S&P USD Select Leveraged Loan Index: A Comprehensive Approach to the Leveraged Loan Market
The S&P USD Select Leveraged Loan Index is a new entrant in the leveraged loan landscape, developed to fill a critical gap in existing liquid leveraged loan index offerings that typically focus on the largest loans by market capitalization. This innovative index encompasses all USD-denominated fully funded term loans with a minimum facility size of…
- Categories Fixed Income
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- Categories
- Fixed Income
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Multi-Factor Indices in the GCC Market
The Middle East is a rapidly evolving region and one of its key growth areas has been factor indexing. The increasing adoption of these strategies has been driven by a desire for risk reduction, enhanced returns and cost efficiencies. This trend is evident not only in the adoption of single-factor styles but also in multi-factor…
- Categories Factors
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