U.S. mid-cap equities – as represented by the S&P MidCap 400 – outperformed both their larger and smaller counterparts since the early 1990s. In decomposing relative returns, sector analysis can be useful to understand the drivers of performance. For example, the S&P MidCap 400’s underweight position in Information Technology at the start of the 21st Read more […]
Since the sector shakeup on Sep. 24, 2018, the S&P 500 fell 19.5% through the close of Dec. 24, 2018 then rebounded 12.2% by the close of Jan. 23, 2019 for a loss of 9.6% in the full period. The annualized volatility of 22.8% in the past 82 days has been the highest since the 82 Read more […]
One of the most persistent trends over the last decade has been the underperformance of value compared to growth. The S&P 500 Growth beat its Value counterpart in eight of the last ten full calendar years, and growth is currently on track to outperform in 2018 (you can find year-to-date figures on page four of our Read more […]
One of the largest ever changes to the Global Industry Classification Standard (GICS®) went into effect prior to the open on Monday 24th September, affecting around 10% of the S&P 500’s market capitalization. In case you missed our previous announcements, here is a brief explanation of GICS, what changed, and why these changes went into Read more […]
After the S&P 500 logged its 9th worst Oct. on record, losing 6.9%, it has bounced back 2.6% month-to-date through Nov. 9, 2018. Though the monthly returns for the eight Novembers following the historically bad Octobers were only positive twice – in 1978 (President Jimmy Carter midterm year) and 1933 – the fact there was Read more […]
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 […]
The Global Industry Classification Standard (GICS) was first developed in 1999 as a four-tiered, hierarchical industry classification system. It is managed jointly by S&P Dow Jones Indices and MSCI to serve as the major global industry framework for investment research, portfolio management, and asset allocation. Each company is assigned a single GICS classification at the sub-industry Read more […]
The S&P Global 1200 can’t stay the same. Along with the S&P 500® and other headline indices from S&P DJI, many companies within the S&P Global 1200 will be given new sector assignments due to the upcoming Sept. 24, 2018, GICS® updates. The most visible change will be the renaming of the Telecommunication Services sector Read more […]
S&P Dow Jones Indices will reshuffle stocks in September to reflect the revised structure of the Global Industry Classification Standard (GICS®) in its indices. The move will see telecommunication services replaced by a new sector called communication services. Its constituents will transfer from telecommunication, information technology (IT), and consumer discretionary. Exhibit 1 shows affected S&P Read more […]
In accordance with the announced upcoming communication services sector change, the new Communication Services Select Sector Index is now live. The select sectors are based on the Global Industry Classification Standard (GICS®) but have different construction rules than the sectors of the S&P 500. In the Select Sectors, each index is made up of all Read more […]
