Tag Archives: sectors
A Stalwart Delivers
U.S. equities struggled again in the past three months. The last rebalance for the S&P 500® Low Volatility Index was in August 2022 and the S&P 500 has since declined 7.0%. The S&P 500 Low Volatility Index, which has historically moderated the performance of the benchmark, lost 5.1% in the same period. For the entirety…
- Categories Strategy
- Other Tags
- Categories
- Strategy
- Other Tags
Examining Equal Weight
In this tumultuous market characterized by Fed rate hikes, elevated inflation and a strong dollar, mega-cap growth companies have suffered heavy losses, paced by recent “Big Tech” earnings disappointments from Meta, Microsoft, Alphabet, Amazon and others. The S&P 500® Top 50 declined by 19% over the past 12 months, underperforming the S&P 500 by 5%….
- Categories Equities
- Other Tags
Watch Your Weighting Scheme
2022 has witnessed a recalibration across financial markets, as investors have digested the impact of higher interest rates amid elevated inflation. Despite bouts of optimism that the U.S. Federal Reserve would take a more dovish stance, and better-than-expected corporate earnings, Exhibit 1 shows that the vast majority of large-, mid- and small-cap indices declined through…
Why Core Construction Matters
Look inside the S&P 1500 and its core components as S&P DJI’s Hamish Preston explores the performance of Equal Weight and sector indices, as well as highlighting how positive earnings can influence performance.
Leadership of Canadian Value Indices
Introduction How have value- and growth-oriented strategies performed in the Canadian equity market in recent years, especially given the recent resurgence in value-oriented companies? Value investing is recognized as a well-known strategy that seeks to benefit from strength in fundamental characteristics of securities that might not be completely reflected in market prices, and it typically…
Low Volatility Holds Its Own
If the first six months of 2022 were defined by the woes of equities, the year’s second half has been defined (so far!) by a comeback. Since hitting a low in mid-June, the S&P 500® has gained an impressive 17.1% through Aug. 18, 2022. In such an environment, low volatility strategies are expected to underperform,…
- Other Tags
Defensive Dynamics
2022 has been a tumultuous year characterized by reversals, with the S&P 500® down 20% in the first six months of the year and rebounding by 9% in July. In this uncertain environment, seeking defensive exposures via sectors could mitigate portfolio risk, but a nuanced perspective may be required to understand which sectors offer the…
- Categories Equities
- Other Tags
Schrödinger’s Carbon: Intensity and Paris Alignment
In quantum mechanics, Schrödinger’s Cat refers to the paradoxical consequences of a thought experiment: can a cat be simultaneously dead and alive? A similarly counterintuitive phenomenon can be found in the context of climate-based analysis: whereby an index may boast a relatively low carbon intensity and yet, perhaps surprisingly, not be judged as aligned with…
- Other Tags
The S&P China 500 Added 2.8% in Q2 2022, as China Equities Held up During a Broad Global Sell-Off
The S&P China 500 bucked the trend of a broad market downturn, posting a 2.8% gain for Q2 2022. In terms of sectors, Consumer Discretionary and Consumer Staples grew nearly 15% each over the quarter, while the Industrials and Energy sectors were also additive to performance. The S&P China 500 outperformed the broader S&P Emerging…
- Categories Equities
- Other Tags
- Categories
- Equities
- Other Tags
Tumultuous Trends
The S&P 500® posted its worst first-half performance since 1970,1 as inflation concerns, Fed rate hikes and slowing economic growth have weighed on markets. Mega caps were hit particularly hard, with the S&P 500 Top 50 posting a loss of 22%, underperforming the S&P 500 by 2%. Exhibit 1 shows that Information Technology was the…
- Categories Equities, Factors, S&P 500 & DJIA
- Other Tags