Tag Archives: large cap

Jul 9, 2019

The Importance of Being Large-Cap

The performance of U.S. equity factors during Q2 was lackluster, with most underperforming the S&P 500, as seen in Exhibit 1.  While Minimum Volatility and Low Volatility were notable exceptions, Value, Quality, High Beta, and Momentum all lagged the benchmark – in large part because of their tilt toward smaller companies.  Since most factor indices…

READ

Jul 24, 2018

Indexing With Large Caps at the Core

The end of May 2018 marked another milestone in the history of ETF growth in global markets, with the total assets in ETFs crossing USD 5 trillion. Indian ETF markets are also growing significantly. The support from the Indian government via the Employees’ Provident Fund Organisation and Department of Investment and Public Asset Management, which…

READ

Jun 26, 2018

Indexing Route to Large Caps

“Trying to pick individual stocks is a trap. I can’t do it. Warren Buffett can, but hardly anyone else can beat the indexes over a long period of time.” Ben Stein The above quote is proof that Ben Stein seems to understand the merits and traits of indices and index-linked products. There is a varied…

READ

May 2, 2018

Energy Powers Small Cap And Value In April

In April, the S&P 500 (TR) gained 0.4%, ending its first consecutive monthly loss in almost two years, but the index is still down 0.4% year-to-date (ending April 30, 2018.)  Mid caps are also down for the year, -1.0%, after the S&P 400 (TR) lost 0.3% in April.  However, Small caps pushed into positive territory, up now 1.6%…

READ

Feb 5, 2018

Here’s Why Mid-Caps Matter As The Dollar Drops

The S&P 500 just posted its best January since 1997, and also had its highest measured optimism, a 6.6% risk premium,  since October 2015.  Whether history repeats itself is yet to be seen, but just a few days after that high risk premium, the stock market topped on Nov. 3, 2015.  By December investors saw the…

READ

Jan 22, 2018

Large-Cap Energy Stands Out in a Year of Low Volatility

Most sentient investors are aware of the low volatility that characterizes the current environment, with the S&P 500®’s trailing twelve-month annualized volatility at approximately half its level from a year ago. This trend was driven in part by some significant negative inter-sectoral correlations, for example between information technology and real estate versus financials, and energy…

READ

Jan 3, 2018

The Smartest Beta

In the last year, plain old beta performed remarkably well in comparison to the so-called “smart” alternatives tracking large-cap U.S. equities.  Of the 17 different strategies reported in our year-end factor dashboard, less than a third outperformed the S&P 500’s total return of 21.83% over the last 12 months. When they are criticized as the…

READ

Jan 2, 2018

Large Caps and Growth Outperformed By Most Since 1999

In December, the S&P 500 (TR) gained 1.1%, posting its 14th consecutive monthly gain, the longest monthly streak on record (data since Sep. 1989.) Also, the S&P MidCap 400 (TR) gained 0.2%, while the S&P SmallCap 600 (TR) lost 0.5%, bringing the 2017 performance to a respective 21.8%, 16.2% and 13.2% for the S&P 500 (TR), S&P MidCap 400…

READ

May 24, 2017

Dividend Growers vs High Dividend Yielders: How They Compared as Interest Rates Rose

There are generally two types of dividend strategies: Dividend growers: Those targeting stocks that consistently grow their dividends over time High dividend yielders: Those focusing on stocks that pay a high dividend yield Not all dividend strategies are created equal These dividend strategies are constructed differently and may be used to accomplish different objectives. For…

READ

Sep 23, 2016

Consistency: What Rolling Returns Say About Dividend Aristocrats

Historically, three-year rolling returns have revealed consistent outperformance from the S&P 500® Dividend Aristocrats® Index, which is composed of quality companies with at least 25 consecutive years of dividend growth. Why look at rolling returns? Rolling returns offer a more robust way to show performance than traditional one-, three-, five- and ten-year trailing returns. Rolling…

READ


Sign up to receive Indexology® Blog email updates