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Tag Archives: passive investing

Sep 29, 2021

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…

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Sep 27, 2021

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…

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Sep 23, 2021

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,…

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Sep 23, 2021

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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Sep 13, 2021

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…

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Sep 7, 2021

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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Aug 5, 2021

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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Jul 27, 2021

Strength of Savings

In the 20 years ending in 2020, 94% of all large-cap U.S. managers lagged the S&P 500®. Mid- and small-cap results were almost equally disappointing. A notable consequence of these shortfalls in active performance has been the rise in passive investing, one of the most significant trends in modern financial history. Our recent Annual Survey…

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Jul 12, 2021

Examining the Risk/Return Impact of International Diversification in India

Take a deeper dive on our recent paper, From Zero to Hero: The Indian Case for Global Equity Diversification, which explores how and why some investors are looking abroad for potential opportunities, with S&P DJI’s Tim Edwards & Koel Ghosh.

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May 18, 2021

Unpacking SPIVA Europe: Did Volatility Provide Opportunity?

How did active managers respond to record volatility and soaring spreads in 2020 as the pandemic brought Europe to a halt? Tim Edwards and Andrew Innes of S&P DJI join Rebecca Chesworth of State Street Global Advisors and Pio Benetti of Kairos Partners SGR to explore the latest results from SPIVA Europe and the active…

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