Tag Archives: quality
S&P Global Dividend 100 Index: Where High Yield Meets Quality
When selecting a high yield dividend strategy, headline yield matters—but so does the strength of the companies delivering it. The ability to sustain and grow dividends over time often depends on underlying business quality. Companies with strong profitability and resilient cash flows are typically better positioned to increase payouts and support long-term price performance. To…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Quality over Quantity: Features of the S&P 500 Quality Index
Beyond being a familiar adage, “quality over quantity” lies at the heart of quality-based investing. Rather than concentrating on the largest stocks, quality indices systematically tilt toward companies with strong profitability, high earnings quality and robust balance sheets. Over the long term, the S&P 500® Quality Index has delivered impressive absolute and risk-adjusted returns as…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Factors for All Markets
Recently, much of the financial media has been occupied with discussing the potential of a bubble in markets. Some have compared the current sentiment to the “animal spirits” of the late 1990s.1 Proponents of this view cite stretched valuations, retail-driven speculation and the circularity of transactions as evidence to support their claims. Whether or not…
- Categories Factors
- Other Tags
High Dividend Yield Meets Quality: Introducing the S&P 500 Quality FCF High Dividend Index
The recently launched S&P 500® Quality FCF High Dividend Index measures high-dividend stocks supported by strong free cash flow (FCF), offering an approach that blends income generation and financial resilience. Companies that consistently generate excess cash may be better equipped to sustain and grow dividends, even during periods of market stress. This focus on income…
- Categories Factors
- Other Tags
Still Quality by Design: A Deep Dive into the Recent Performance of the S&P SmallCap 600
Prior to the start of 2025, the S&P SmallCap 600® outperformed the Russell 2000—another prominent small-cap U.S. equity index—in 20 of the full calendar years to December 2024. However, the S&P SmallCap 600 has underperformed the Russell 2000 by 9% YTD, putting it on track to record its worst year of relative performance since its…
- Categories Equities
- Other Tags
- Categories
- Equities
- Other Tags
S&P 500 Quality FCF R&D Leaders Index: Highlighting Innovation, Growth and Fundamental Strength
Research and development (R&D) investment is often a key indicator of innovation, competitiveness and a forward-looking mindset—qualities that may drive future revenue streams and market leadership. Comparing R&D Intensity1 across companies can help identify those that are dedicating significant resources to developing new products, technologies or services capable of disrupting industries and generating lasting value….
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Multi-Factor Indices in the GCC Market
The Middle East is a rapidly evolving region and one of its key growth areas has been factor indexing. The increasing adoption of these strategies has been driven by a desire for risk reduction, enhanced returns and cost efficiencies. This trend is evident not only in the adoption of single-factor styles but also in multi-factor…
- Categories Factors
- Other Tags
One Year On: The Rise of the S&P Quality FCF Aristocrats Indices
Launched Sept. 23, 2024, the S&P Quality FCF Aristocrats® Indices track companies that consistently generate robust free cash flow (FCF) over a specific number of years. FCF, which represents the cash remaining after a business meets its operational costs and capital investments, serves as a key barometer of company quality. The S&P Quality FCF Aristocrats…
- Categories Factors
- Other Tags
Navigating Market Cycles: The Complementary Roles of Quality and Momentum Indices
Over the long term, both the S&P 500® Quality Index and S&P 500 Momentum Index have outperformed the broader market (as measured by the S&P 500) in terms of absolute and risk-adjusted returns. The quality factor emphasizes financially strong and stable companies, while momentum tracks stocks with sustained price trends. When combined, these strategies create…
- Categories Factors
- Other Tags
- Categories
- Factors
- Other Tags
Free Cash Flow as a Proxy for Quality in Europe: Introducing the S&P Europe Quality FCF Aristocrats Index
The S&P Europe Quality FCF Aristocrats® Index introduces the quality free cash flow (FCF) methodology to the European region. The index methodology selects high quality companies in the S&P Europe LargeMidCap universe that emphasize consistent and efficient free cash flow (FCF) generation.1 Our recent education paper explores the use of FCF metrics in creating indices…
- Categories Factors
- Other Tags