Tag Archives: passive management
Peak Passive and Market Efficiency
With more than $7 trillion tracking the S&P 500 alone, we estimate that index funds now encompass between a quarter and a third of the capitalization of the U.S. equity market. This extraordinary growth must surely rank as one of the most important developments in contemporary financial history. When will it end? For at least…
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Indexing’s Evolution in Indian Markets
Indexing, also known as index-based or passive investing, has been slowly but steadily growing and transforming asset management and financial markets in India. For more than a decade, there has been a strong preference for actively managed funds among Indian investors, and understandably so as historically these were the only financial products that dominated the…
Exploring Active vs. Passive in Latin America
How do active managers in Latin America stack up to their benchmarks? Discover the key takeaways from the latest SPIVA Latin America Scorecard with S&P DJI’s Tim Edwards and Ericka Alcántara.
- Categories Equities, Fixed Income
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active management, Active vs. Passive, Brazil, Chile, Ericka Alcántara, indexing, Latin America, Latin American equities, Latin American Fixed Income, Latin American Funds, Mexico, passive investing, S&P Brazil BMI, S&P Chile BMI, S&P Dow Jones Indices, S&P Indices vs. Active, S&P/BMV IRT, SPIVA, SPIVA Latin America Scorecard, Tim Edwards
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- active management, Active vs. Passive, Brazil, Chile, Ericka Alcántara, indexing, Latin America, Latin American equities, Latin American Fixed Income, Latin American Funds, Mexico, passive investing, S&P Brazil BMI, S&P Chile BMI, S&P Dow Jones Indices, S&P Indices vs. Active, S&P/BMV IRT, SPIVA, SPIVA Latin America Scorecard, Tim Edwards
Shooting Hoops with Michael Jordan: An Allegory
I am not a particularly good athlete, and perhaps the sport at which I am most inept is basketball. Despite that, let’s assume that I somehow challenge Michael Jordan, arguably the best player in the history of the game, to a free throw shooting contest. What are my chances of success? (Stay with me, I…
- Categories Equities, S&P 500 & DJIA
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Growth Managers’ Perfect Storm
Anyone familiar with our SPIVA reports will realize that most active managers fail most of the time. In 21 years of SPIVA data, a majority of large-cap managers underperformed the S&P 500 18 times; the most recent of the three exceptions came in 2009. Even in that context, 2021 was a year of above-average difficulty,…
- Categories Equities, S&P 500 & DJIA
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Green Pools: Evolving ESG Trading Ecosystems
Compared to the wide range of liquid, tradable instruments associated to more traditional benchmarks like the S&P 500®, the trading ecosystem of ESG-based investment products is still in its infancy. But, with the increased volume in listed futures linked to the S&P 500 ESG Index and S&P Europe 350® ESG Index, change is afoot. Of…
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2022, Canada FA, clean energy, climate, ecosystem, equities, ESG, ETF, ETFs, futures, IET, Index Investment Strategy, liquidity, market efficiency, Net Zero, Option, options, S&P 500, S&P 500 ESG, S&P 500 ESG Index, S&P DJI ESG, S&P Europe 350 ESG, S&P Europe 350 ESG Index, Sherifa Issifu, Trading, Trading Volumes, U.S., U.S. Equities, US FA, volumes
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- 2022, Canada FA, clean energy, climate, ecosystem, equities, ESG, ETF, ETFs, futures, IET, Index Investment Strategy, liquidity, market efficiency, Net Zero, Option, options, S&P 500, S&P 500 ESG, S&P 500 ESG Index, S&P DJI ESG, S&P Europe 350 ESG, S&P Europe 350 ESG Index, Sherifa Issifu, Trading, Trading Volumes, U.S., U.S. Equities, US FA, volumes
The Odds Are Against You
S&P Dow Jones Indices’ SPIVA (S&P Index Versus Active) scorecard, first published in 2002, has become our industry’s de facto scorekeeper of the relative performance of active managers. We recently released the U.S. SPIVA results for 2021. Nothing in the 2021 report was surprising, as most active managers continued to underperform benchmarks appropriate to their…
- Categories Equities, S&P 500 & DJIA
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On Schedule
The poet tells us that in spring, a young man’s fancy lightly turns to thoughts of love. Experience tells us that in January, an active manager’s fancy turns to thoughts of triumph. Earlier this month, we learned that 70% of the institutional investors questioned in a recent poll thought that “markets will favor active management”…
- Categories Equities, S&P 500 & DJIA
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A Stellar 2021 for Indian Equities
Indian equities had a stellar 2021—the S&P BSE SENSEX rose over 23%, outpacing most major emerging markets, though slightly lagging the S&P 500®, which gained 29%. Information Technology and Financials were the top contributors, adding 9% and 6%, respectively, to the performance of the Indian bellwether. Smaller Indian companies did even better than blue chips;…
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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