Tag Archives: information technology
These Go to 11: Diversification with S&P 500 Sectors
Many strategies (including passive ones) hold large allocations to Information Technology. A “barbell” approach can mitigate risk from high exposure to one sector by pairing it with another. Do you remember sending your first email? For many, it was likely around the mid-1990s when a “googol” was still 10^100 rather than a verb and the…
- Categories S&P 500 & DJIA
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Information Technology Has Evolved to Become a Consistent Presence in the S&P 500 Low Volatility Index
Equities in 2021 had a slow start, but as December approaches it looks to be another stellar year. Through Nov. 18, 2021, the S&P 500® was up 27%. For a strategy that is explicitly designed to mitigate risk, the S&P 500 Low Volatility Index’s year-to-date gain of “only” 17% is well within the range of…
- Categories Factors
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What’s the Role of the S&P 500 in the Global Opportunity Set?
As Asian investors consider potential shifts in inflation and macro trends, could a closer look at U.S. markets through the lens of the S&P 500 help them identify potential opportunities abroad? Hamish Preston and Jason Ye of S&P DJI join Erik Norland of CME Group to explore the potential risk/return and diversification benefits of U.S….
- Categories Equities, S&P 500 & DJIA
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Capturing Future Tech with Index-Based Tools
Discover how index-based strategies are expanding access to technology and innovation factors with S&P DJI’s Anu Ganti, Direxion’s Dave Mazza, and ProShares’ Simeon Hyman.
- Categories Equities, Strategy
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benchmarking, disruptive technology, Dividend Aristocrats, dividend growers, dividend growth strategies, ETFs, Financial Advisors, global equities, harnessing innovation, indexing, risk management, S&P Dow Jones Indices, S&P Kensho Moonshots, S&P Technology Dividend Aristocrats, sector strategies, transformative technology
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- benchmarking, disruptive technology, Dividend Aristocrats, dividend growers, dividend growth strategies, ETFs, Financial Advisors, global equities, harnessing innovation, indexing, risk management, S&P Dow Jones Indices, S&P Kensho Moonshots, S&P Technology Dividend Aristocrats, sector strategies, transformative technology
Concentrating on Technology
After the dominant performance of large-cap technology stocks in 2020, concentration concerns naturally come to mind. The HHI, or Herfindahl-Hirschman Index, is a widely-used concentration measure; it’s defined as the sum of the squared index constituents’ percentage weights (usually taken as whole numbers). For example, the HHI for an equally-weighted 50 stock portfolio is 200…
Celebrating 64 Years of the S&P 500
The S&P 500® was launched on March 4, 1957, and so yesterday marked its 64th birthday. To celebrate this milestone, a number of my colleagues and I recently appeared on our Index Investment Strategy team’s weekly call (sign up for the daily dashboard to receive the invite). If you couldn’t make it, here are a…
- Categories Equities, S&P 500 & DJIA
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Exploring the S&P/ASX All Technology Index’s Remarkable First Year
As we mark the first anniversary of the S&P/ASX All Technology Index, it seemed an opportune time to look back at what can only be described as a remarkable inaugural year. After peaking on Feb. 17, 2020—just one trading day post launch—the index plunged nearly 50% over the ensuing month, bottoming out on March 23…
- Categories Equities
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A Different Kind of Bubble
Information Technology was the top-performing sector in 2020, up 44%, while Momentum (up 28%) was the second best-performing factor. These two results are reminiscent of the bubble we experienced two decades ago. But the Tech sector of today is not your father’s Tech sector. Similarly, we can analyze the market from a factor perspective and…
A Reversal, or Two
For many equity investors, the stand-out theme of last year was the reversal in the market’s initial response to, and recovery from, the COVID-19 pandemic: the dramatic price declines in March, the wild swings around the bottom as VIX® marked its highest closing level ever, and the just-as-dramatic recovery to new all-time highs by late…
- Categories Equities, S&P 500 & DJIA
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Tesla Added to the S&P 500
Yesterday, S&P Dow Jones Indices announced that Tesla will be added to the S&P 500® prior to the open on Monday, Dec. 21, 2020. The Index Committee has not yet determined which current constituent Tesla will replace, nor how Tesla will be added to the index—because of its size, S&P DJI is seeking feedback through…
- Categories ESG, S&P 500 & DJIA
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