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Tag Archives: revenue exposure

Dec 5, 2022

Diversification Beyond Borders

Academic theorists often assert the decision of where to invest as more important than the decision of what to invest in. Studies suggest that up to 90% of investment returns are attributable to location. Regional equity indices represent different combinations of geographic and sector exposure. These differences can potentially improve the diversification benefits available when…

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Jan 12, 2021

Style Rotation through the Revenue Exposure Lens

One of the major trends in the last few years has been the outperformance of large, growth-oriented stocks and, at first glance, 2020 represented a continuation of this trend. For example, the S&P 500® Growth (33.5%) outperformed the S&P 500 Value (1.4%) by 32.1% last year, the largest difference in calendar year total returns between…

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Mar 16, 2020

Bye Bye Bull Market: Reaction to Coronavirus

The last few weeks have definitely felt like a “where were you when…?” moment as coronavirus fears spread around the world and many people’s day-to-day lives have been disrupted.  Amid the anxiety and disruption, global financial markets nosedived, sending all major equity indices tumbling, VIX® soaring to levels not seen since the financial crisis, and…

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Dec 16, 2019

Equity Markets React to the U.K. Election

At the General Election on Thursday, U.K. voters handed a resounding victory to Boris Johnson’s Conservative party.  The British electorate awarded the party with 365 out of 650 seats, the largest outright majority of any U.K. government since 2001, and the biggest victory for the Conservative party since Margaret Thatcher’s final victory in 1987. Exhibit…

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Jun 6, 2019

Gearing up for auto tariffs? Revenue exposure might be useful

May was categorized by the return of macro fears.  Many equities indices and fixed income indicators flashed red – and the S&P 500’s four month win streak ended – as investors grappled with trade tensions and the potential impact on global growth.  Adding to investors’ uncertainty, President Trump’s surprise month-end announcement of tariffs on Mexican…

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May 15, 2019

Low Volatility and Minimum Volatility Are Not the Same

Global equities have been turbulent recently as a combination of stalled trade negotiations and announcements of tit-for-tat tariffs increased the prospect of a trade war between the U.S. and China.  After its historic start to the year, the S&P 500 is down 3.7% so far in May, while many other markets have also faltered month-to-date. …

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Dec 5, 2018

Brexit: Sell on May and Run Away?

29 months after the referendum that triggered Britain’s departure from the E.U., and a little over four months from the scheduled departure date, the nature of the ultimate exit deal (if any) remains uncertain. What can indices tell us about the market’s reaction and expectations? The volatility of the pound sterling has offered a direct link to the uncertainty…

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Apr 11, 2018

Revenue Exposure of the S&P/ASX 200

The S&P/ASX 200 is widely regarded as the institutional investable benchmark in Australia. It is composed of the largest 200 companies listed on the Australian Securities Exchange by float-adjusted market capitalization. Although the majority of the companies are domiciled in Australia, a lot of them derive a significant portion of their revenue from foreign markets….

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Feb 28, 2018

How Global Are the S&P 500®, the S&P MidCap 400®, and the S&P SmallCap 600® Style Indices?

In a prior post, we looked at the global exposure of the S&P 500. Given the large number of multi-national corporations based in the U.S., approximately 29% of S&P 500 revenues came from overseas in 2017. Beyond large-cap companies, do regional and country exposures change as investment style changes? In this blog, we add to…

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Feb 14, 2018

How Global Is the S&P 500?

The S&P 500® is widely considered one of the best single gauges of the U.S. equity market. Composed of 500 companies that are domiciled in the U.S., the index captures approximately 82%[1] of the total U.S. equity market value. An index of U.S. companies may lead one to assume that the index is only reliant…

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