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Tag Archives: Index Investment Strategy

Jan 26, 2023

Building a Passive Bridge across the Pond

At over 300 years old, the British government bond and stock markets are among the world’s oldest. They are also among the largest globally; ranked by float-adjusted market capitalization, the U.K. gilt market and U.K. stock market are the fourth and third biggest, respectively. The British investment industry has existed for centuries, with the country’s…

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Dec 15, 2022

Safe Harbors and Silver Linings

As we reflect on this year’s notable market themes, one trend is certain: it has been a tumultuous market characterized by rate hikes and inflation concerns across regions, with significant losses across asset classes. Crypto market performance added to jitters, with the S&P Cryptocurrency LargeCap Index down 66% YTD. Losses throughout the year culminated in…

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Nov 10, 2022

Tip of the Iceberg: Fixed Income ETFs in Times of Crisis

20 and 15 years after the launches of the first ETFs based on the iBoxx USD Liquid Investment Grade (IG) Index and iBoxx USD Liquid High Yield (HY) Index, respectively, ETFs are increasingly used to trade fixed income without the necessity of transacting individual bonds. The tradability of bond ETFs has been leveraged by a…

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Nov 10, 2022

Examining Equal Weight

In this tumultuous market characterized by Fed rate hikes, elevated inflation and a strong dollar, mega-cap growth companies have suffered heavy losses, paced by recent “Big Tech” earnings disappointments from Meta, Microsoft, Alphabet, Amazon and others. The S&P 500® Top 50 declined by 19% over the past 12 months, underperforming the S&P 500 by 5%….

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Oct 31, 2022

The Climb: SPIVA South Africa Mid-Year 2022 Scorecard

A clever (yet ill-fated) character once said, “Chaos is a ladder.” The first half of 2022 was indeed full of chaos in many major markets, including South Africa; our latest SPIVA South Africa Scorecard for the region shows where the rungs were slippery and where active funds were able to climb the fastest. Overall, the…

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Oct 19, 2022

Size, Sectors and Skew: Observations from the SPIVA MENA Mid-Year 2022 Scorecard

The semiannual S&P Indices Versus Active (SPIVA®) Scorecards1 measure the performance of actively managed funds against their corresponding benchmarks in various markets around the world. According to the latest SPIVA MENA Mid-Year 2022 Scorecard, the majority of MENA active equity managers outperformed their benchmarks, despite a turbulent second quarter and geopolitical tensions. Performance across the…

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Oct 18, 2022

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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Oct 14, 2022

Taking Higher Interest Rates in STRIDE

When it rains, it pours, and there’s no lack of bad news in 2022. The equity market is in solid bear territory, with the S&P 500® down 22% YTD. Inflation is high, and the Federal Reserve has aggressively hiked interest rates in recent months. The latest cycle of rate increases has happened faster than at…

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Oct 5, 2022

This Time It Was Easy: SPIVA Canada

Each time SPIVA® results are released, we are naturally asked to explain why a certain portion of active managers underperformed in any given fund category. Sometimes, management strategies and market moves defy simple explanations, but at other times an explanation can be plain as day. For actively managed equity funds in Canada, a recent turn…

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Oct 5, 2022

Dissecting the Divergent Performance among Latin American Fund Managers

Lessons from the SPIVA Latin America Mid-Year 2022 Scorecard The semiannual S&P Indices Versus Active (SPIVA®) Scorecards1 measure the performance of actively managed funds against their corresponding benchmarks in various markets around the world. According to the latest SPIVA Latin America Mid-Year 2022 Scorecard, the YTD performance among active managers across Latin American countries varied…

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