Tag Archives: passive investing
Tucking in to the SPIVA Australia Mid-Year 2022 Scorecard
The semiannual S&P Indices Versus Active (SPIVA®) Scorecard1 measures the performance of actively managed funds against their corresponding benchmarks in various markets around the world. The latest Australian edition, the SPIVA Australia Mid-Year 2022 Scorecard, provides a number of interesting insights about the performance of active versus passive across active fund categories. Although the long-term…
- Categories Equities, Fixed Income
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2022, Active, active management, Active vs. Passive, ASX, Australia, Australian bonds, Australian equities, Benedek Voros, IIS, Index Investment Strategy, Mid-Year 2022, Passive, REIT, S&P Developed Ex-Australia LargeMidCap, s&p/asx 200, S&P/ASX 200 A-REIT, S&P/ASX Australian Fixed Interest 0+ Index, S&P/ASX Mid-Small, SPIVA, SPIVA Australia
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- Equities, Fixed Income
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- 2022, Active, active management, Active vs. Passive, ASX, Australia, Australian bonds, Australian equities, Benedek Voros, IIS, Index Investment Strategy, Mid-Year 2022, Passive, REIT, S&P Developed Ex-Australia LargeMidCap, s&p/asx 200, S&P/ASX 200 A-REIT, S&P/ASX Australian Fixed Interest 0+ Index, S&P/ASX Mid-Small, SPIVA, SPIVA Australia
Active Management: Naughty or Nice?
The history of active investment management is, for the most part, a history of failure and frustration. Most active managers underperform most of the time, and success in one period seems not to predict subsequent success. We have long argued that active underperformance is not coincidental—it happens for identifiable and understandable reasons, and is therefore…
- Categories Equities, S&P 500 & DJIA
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Closing the Retirement Gap with Indices
How can indices help retirees achieve retirement income goals? Nobel Laureate and Resident Scientist at Dimensional Fund Advisors, Dr. Robert Merton joins S&P DJI’s Dan Draper and Aye Soe for a deep dive into the U.S. retirement ecosystem.
- Categories Equities, Fixed Income
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401k, Aye M. Soe, Dan Draper, DB plans, DC Plans, defined benefit plans, defined contribution plans, Dr. Robert Merton, ESG indices, FIAs, Financial Advisors, fixed index annuities, indexing, insurers, LDI, Liability driven investing, multi-asset indices, multi-factor indices, pension funds, retirement annuities, retirement planning, S&P 500, S&P Dow Jones Indices, S&P Stride, SECURE Act, Target Date, target date indices
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- Equities, Fixed Income
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- 401k, Aye M. Soe, Dan Draper, DB plans, DC Plans, defined benefit plans, defined contribution plans, Dr. Robert Merton, ESG indices, FIAs, Financial Advisors, fixed index annuities, indexing, insurers, LDI, Liability driven investing, multi-asset indices, multi-factor indices, pension funds, retirement annuities, retirement planning, S&P 500, S&P Dow Jones Indices, S&P Stride, SECURE Act, Target Date, target date indices
The Decline of the Index Effect
The growth of passive investing has spurred suggestions that stock returns may be influenced by a so-called “index effect,” as trading by index funds responds to changes in index membership. If this were true, stocks added to the index would initially outperform amid buying pressure, while index deletions would underperform. Our recent paper—“What Happened to…
- Categories S&P 500 & DJIA
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Mid- and Small-Cap Fund Managers Lost Their Advantage – SPIVA U.S. Mid-Year 2021 Scorecard
The SPIVA® U.S. Mid-Year Scorecard continues to show that active funds’ strong absolute returns do not always translate into relative success compared with their benchmarks. In 15 out of 18 categories of domestic equity funds, the majority of actively managed funds underperformed their benchmarks. Over the 12-month period ending June 30, 2021, 58% of large-cap…
- Categories Equities
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- Equities
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The Importance of Order
We all know that stock market returns vary substantially over time. For example, the S&P 500®’s performance between 1981 and 2020 ranged from -37% (2008) to +38% (1995). The market’s compound annual return for this period was 11.5%. Investors, however, live with actual portfolio values, not abstract rates of return. Obviously, and other things equal,…
- Categories S&P 500 & DJIA
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Global Diversification Trending in India – Time to Notice?
The merit of international diversification seems to have proven itself lately in the context of the Indian market. Over the past year, interest has increased in adding global exposures to local investment portfolios. Global markets offer the potential opportunity to diversify beyond a traditional concentrated focus on local markets. The latest August Global Equity Dashboard…
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Headwinds on the Active Horizon
Active managers’ performance was disappointing in 2020, despite the market’s heightened volatility. As the market continues to march upward in 2021, it’s natural to wonder if current conditions are favorable for stock pickers. We expect active managers’ difficulties to persist. We can think of volatility in terms of its components: dispersion and correlation. Active managers…
- Categories S&P 500 & DJIA
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A Diverse Approach to Sectors: Examining the S&P BSE SENSEX 50
How does index design influence sector diversification? Look under the hood of the S&P BSE SENSEX 50 Index with S&P DJI’s Ved Malla.
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What’s Driving Passive’s Continued Climb in India?
While India has taken to passive investing in a big way, there are still a few hurdles preventing serious growth. S&P DJI’s Tyler Carter & Ved Malla explore how passive’s rise in other markets could help inform a path forward in India. Learn more about passive investing in India: Charting a Course for the Continued…
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