After examining the risk factor exposure of the S&P China A-Share Factor Indices in our previous blog, we further explore the sector bias and associated impact on index performance. Apart from the S&P China A-Share Enhanced Value Index, all the S&P China A-Share Factor Indices tended to underweight the Financials sector,[1] though other unique sector Read more […]
Through the end of July, equities had netted a nice gain for 2019 (though the picture looks a lot different so far in August). Unusually, the S&P 500 Low Volatility Index® outperformed in an environment when it has typically lagged its benchmark. (The S&P 500 gained 20.2%, while the low volatility index was up 20.8%, Read more […]
U.S. mid-cap equities – as represented by the S&P MidCap 400 – outperformed both their larger and smaller counterparts since the early 1990s. In decomposing relative returns, sector analysis can be useful to understand the drivers of performance. For example, the S&P MidCap 400’s underweight position in Information Technology at the start of the 21st Read more […]
While nearly everyone in the Canadian investment community has heard of the S&P/TSX Composite, few are aware of the key methodological intricacies that distinguish it from other broad market Canadian equity benchmarks. The most notable distinction is that the S&P/TSX Composite is designed specifically for Canadians (as are all S&P/TSX Indices), while many other Canadian Read more […]
In our previous blog, we looked at the S&P Factor Indices’ ESG exposures, showing that factor exposures can have an influence on ESG scores. In this blog, we’ll discuss these scores at the sector level and see how implementing an ESG or carbon reduction strategy on poorer ESG-performing factor indices can help investors Read more […]
The performance of U.S. equity factors during Q2 was lackluster, with most underperforming the S&P 500, as seen in Exhibit 1. While Minimum Volatility and Low Volatility were notable exceptions, Value, Quality, High Beta, and Momentum all lagged the benchmark – in large part because of their tilt toward smaller companies. Since most factor indices Read more […]
In 2018, the U.S. set world production records for both natural gas and oil.[1] The growth in production is expected to continue and the U.S. is set to become a net energy exporter[2] by 2020, ending a 75-year period of dependence on imports. The increase in energy production not only shifts the dynamics of the Read more […]
Last month, in collaboration with S&P Dow Jones Indices (S&P DJI), LinkUp launched the S&P 500® LinkUp Jobs Index and related sector indices. The Index measures labor demand for companies within the S&P 500 at an aggregate, sector, and individual company level and serves as an indicator of the health of the labor market and Read more […]
After four consecutive months of gains by the S&P 500®, the U.S. equity market broadly declined in May. The S&P 500, S&P MidCap 400®, and S&P SmallCap 600® declined 6.6%, 8.1%, and 8.9%, respectively. The primary catalyst was the renewed trade tension between the U.S. and China, which reversed course from the optimism coming out Read more […]
The S&P/TSX 60 gained 15.5% YTD[i] and many companies included in the index have benefitted from business prospects in the U.S. While nearly all stocks in the index are domiciled in Canada, 49%[ii] of combined revenues come from within Canada’s borders, while another 30% are sourced in the U.S. As shown in Exhibit 1, stocks Read more […]
