Tag Archives: index performance

Before & After The Sector Shakeup In The S&P 500 – Part 2

In part 1 of this post, the current sector weights, returns and correlations of the S&P 500 are shown, as well as a map depicting the expanded telecommunication services sector into communication services.  Now, here’s a deeper dive into what is moving and its impact. While the entire list of companies moving can be found Read more […]

Performance Trickery

Suppose you, as a hypothetical financial advisor, encounter a hypothetical marketer who presents the following hypothetical performance data:   Last Year Trailing 3 Years Trailing 5 Years Trailing 10 Years Portfolio 25.0% 11.9% 16.0% 8.8% Benchmark 21.8% 11.4% 15.8% 8.5% Not only did the portfolio beat its benchmark handily in 2017, says our marketer, but Read more […]

The Biggest Bull Didn’t Win

The big news in August was that the aging Bull market (since March 9, 2009) became the longest-running Bull market in S&P 500 history, as it posted an annualized 16.6% equity return and 19.1% with dividends, as my colleague, Howard Silverblatt pointed out.  While the record-breaking Bull market for the S&P 500 is spectacular, mid-caps and Read more […]

Growth Is Still Hot Only In Small Caps

In July, the total return of the S&P SmallCap 600 Growth was 3.75%, which was 1.15% higher than the total return of 2.60% generated by the S&P SmallCap 600 Value.  This is interesting since typically growth does not outperform value in small caps when value outperforms growth in large and mid caps.  (In July, the total Read more […]

Proximate Cause

Our colleagues at S&P Global Market Intelligence recently completed a paper analyzing the impact of exchange-traded funds on stock-level pricing.  Their work found that “…the impact of ETF trading is transient and of only a modest magnitude under even extreme assumptions” (my italics).  This conclusion is a rebuttal to critics who believe that the growth Read more […]

One Big Problem In July For One Small Cap Index

Much attention has been drawn to small caps by top tier media since the small cap premium is now the biggest in eight years and the fifth biggest in history. The outperformance of the small cap stocks versus the large caps is being driven by the current economic environment of growth, rising interest rates, inflation and Read more […]

Small Cap Premium Is 5th Biggest In History

Small caps are outperforming large caps (S&P 600 (TR) – S&P 500 (TR)) in H1 2018 by the most in eight years, since H1 2010, from growing  concerns over rising tariffs and general U.S. foreign trade policy. In the past four months, the smaller companies have outperformed larger companies by 10.1%, contributing to the 5th biggest Read more […]

Momentum’s Minsky Moment?

U.S. equity funds following momentum (or relative strength) strategies have generally performed well recently, and their performance has been rewarded with inflows.  This is important because momentum, uniquely among investment styles, is self-reinforcing – until it isn’t. Typically, as factors become more popular, their excess returns are likely to diminish.  For example: the more value Read more […]

Small Caps Beating Large By The Most In 16 Years

Small caps just outperformed large caps for three consecutive months for the first time since Sep. 2016.  From Feb. through May, the S&P SmallCap 600 (TR) outpaced the S&P 500 (TR) by 9.5%. It is the biggest premium realized in a three month period since the three months ending in May 2002.  In fact, outperformance this big has only happened Read more […]

Inflation: Benign for Now

Having broken through 2% in January 2018, the 10-year U.S. Treasury breakeven rate (as measured by the difference between the S&P U.S. Treasury Bond Current 10-Year Index and the S&P U.S. TIPS 10 Year Index) has continued to increase, reaching a YTD high of 2.18% on April 23, 2018. As of May 14, 2018, the Read more […]