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Tag Archives: factors

May 16, 2024

Exploring the Characteristics of the Dow Jones U.S. Select Dividend Index

Indices that not only track the broad equities market, but also offer the potential for enhanced dividends may appeal to those searching for income within the equity asset class. In this blog, we investigate what the Dow Jones U.S. Select Dividend Index has historically brought to the table, including high dividend income, superior risk-adjusted performance…


May 15, 2024

Identifying Economic Moats Using a Quantitative Lens: The S&P 500 Economic Moat Index

Popularized by Warren Buffett, the term economic moat refers to a company’s sustainable competitive advantage that allows it to preserve market share and generate high profits over the long term. In this analogy, companies are compared to medieval castles surrounded by deep and wide moats, which protected the castles from attack. In the same way,…


May 2, 2024

Current Discounted Valuations & Historical Downside Protection: The S&P High Yield Dividend Aristocrats Index

In our last blog, we highlighted the superior long-term performance of the S&P High Yield Dividend Aristocrats® versus the S&P Composite 1500®, as well as compared to long-term Treasury bonds and the CPI. In this blog, we will shift our focus to examine the current discounted valuations and enhanced dividend yields of the S&P High…


Apr 29, 2024

How Are Some Dividend Growers Outpacing Inflation and the Benchmark?

With the 10-year U.S. Treasury yield hovering around 4.5%, investors may be able to find attractive yields without taking on too much risk. The challenge, however, is maintaining purchasing power relative to inflation (USD 1,000 in December 1999 was only worth USD 538 as of March 2024). For those seeking income and total returns that…


Apr 16, 2024

Balancing Growth and Value in the Mid-Cap and Small-Cap Spaces: The S&P MidCap 400 GARP and S&P SmallCap 600 GARP Indices

Launched in February 2019, the S&P 500® GARP Index was the first transparent benchmark tracking growth companies that are identified as being higher quality with lower valuations. Given the success of this index, we launched the S&P MidCap 400® GARP Index and S&P SmallCap 600® GARP Index to expand the available toolkit. Since their launches…


Mar 21, 2024

The S&P 500 Low Volatility Index: Currently Valued at the 99th Percentile of Cheapness Relative to the S&P 500

Investor enthusiasm for AI and mega-cap technology stocks has propelled the S&P 500® to a gain of more than 30% over the past 12 months. As the S&P 500 has been reaching new highs on a regular basis, it is understandable if low volatility stocks have not been at the top of investors’ minds. This…


Mar 20, 2024

Diversification, Equity & Indices

The results of S&P DJI’s latest SPIVA U.S. Scorecard are in: Most large-cap active managers underperformed the S&P 500® for the 14th consecutive year in a row. 60% of active large-cap funds underperformed the S&P 500 in 2023, slightly better than the long-term average of 64%, and a relatively benign result considering the dominance of…


Mar 15, 2024

Balancing Defense with Growth (Part II): The S&P Quality Developed Ex-U.S. LargeMidCap

As investments in artificial intelligence continue to boom, major indices in the U.S., Europe and Japan have hit all-time highs. In our previous blog, we reviewed how the S&P U.S. Quality Indices outperformed their corresponding benchmarks over both the short and the long term. Similarly, a quality premium also exists in developed ex-U.S. equity markets….


Mar 7, 2024

The February 2024 Rebalance of the S&P 500 Low Volatility Index

Since the previous rebalance for the S&P 500® Low Volatility Index on Nov. 17, 2023, and its most recent on Feb. 16, 2024, the S&P 500 delivered a stunning 11.3% return. During this period, the S&P 500 Low Volatility Index was up 5.3%, strong by historical standards, albeit underperforming the S&P 500. As has been the…


Feb 1, 2024

S&P High Yield Dividend Aristocrats Rebalance: Let’s Welcome the 18 Newest Members

The S&P High Yield Dividend Aristocrats® includes large-, mid-, and small-cap companies in the U.S. that have raised their dividends for at least 20 consecutive years. The index recently concluded its annual reconstitution on Jan. 31, 2024, which brought 18 new members into this accomplished group. Accounting for the three deletions, the index’s total count…


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