Tag Archives: institutional investor

Not Melting Yet

Despite the hovering cloud of geopolitical menace as we entered 2019, the U.S. equity market enjoyed an almost seamless rise through the first four months of the year. May’s retreat reacquainted investors with volatility and served as a reminder that the market is near all-time highs, having enjoyed a more or less sustained increase for Read more […]

Volatility Test: Defensive Factor Indices versus Actively Managed Funds

Indices based on factors such as low volatility and quality generally have defensive characteristics. These strategies tend to outperform the broad benchmark in down markets, as previous studies have shown.  Yet some market participants also believe that active management fares somewhat better than the benchmark in periods of volatility and distress. In 2018, the S&P Read more […]

2018 Retirement Funding Update for DC Account Holders

2018 produced negative absolute returns across a number of asset classes, particularly international stocks. A broad benchmark of stocks traded outside of the U.S., the S&P Global ex-U.S. BMI (US Dollar) Gross Total Return Index, lost 14.18% of its value. Nevertheless, many investments kept pace with the change in cost of securing future retirement income, Read more […]

Raising the Bar in Small Caps

As a leading index provider with clients and customers around the world, S&P Dow Jones Indices regularly launches new indices.  Just like our children, we try to love them all equally.  Every now and then, however, a particularly exciting new index comes along.  Last week, our global equities group launched a potentially important new benchmark Read more […]

Q4 2018 Performance Review for the S&P Risk Parity Indices

As the ball dropped this New Year’s Eve, most investors were more than happy to bid adieu to what proved to be a volatile end to 2018. The fourth quarter began with the October sell-off, which was just the start of a highly volatile quarter. The S&P 500® fell almost 7% in October alone, with Read more […]

Volatile but Not Necessarily Disastrous

In 2018, the S&P 500 declined for the first time in 10 years. The year’s 4% decline is obviously de minimis compared to 2008’s 37% plunge, though investors may feel it more keenly since the fourth quarter’s 14% decline erased what had been a profitable year.  Nonetheless, the risk landscape changed dramatically in 2018 compared Read more […]

Dow Jones Sustainability Indices Continue to Raise the Corporate Sustainability Bar

Today, S&P Dow Jones Indices and RobecoSAM announced the results of the annual rebalancing of the Dow Jones Sustainability Indices (DJSI). The DJSI World will be celebrating its 20th anniversary in 2019, making it one of the longest-running sustainability benchmarks in the world. Even after nearly 20 years, the index has lost none of its Read more […]

Reweighting ESG: Does Changing the Component Weighting Matter?

In a prior blog series,[1] we explored the relationship between environmental (E), social (S), and governance (G) scores and future stock performance. In all three cases, the results showed that top quintile portfolios outperformed the bottom quintile portfolios. However, a deeper analysis revealed that the spread between Q1 and Q5 portfolios was the highest for Read more […]

No Longer Calm but Not Chaotic

Although market volatility has retreated somewhat since the spike in early February, it has remained elevated. In the last 30 trading sessions, the S&P 500 moved by more than 1% (in either direction) 14 times. VOLATILITY FOR S&P 500 (21-Day Rolling) Volatility manifests itself in both dispersion (a measure of the magnitude of differences among Read more […]

Vectors of Volatility

Risk is once again part of investors’ vocabulary. Through yesterday’s close, the S&P 500 lost a total of 6%, made all the more jarring by the practically straight line rise in most of 2018 prior to the losses. Volatility has, of course, ticked up, but in the context of the broader 27 year history, not Read more […]