Tag Archives: size
Splitting Size in U.S. Equities: S&P DJI versus MSCI in H1 2023
The first half of 2023 saw a strong rebound from 2022 for equities: the S&P 500® gained 17% as the U.S. outperformed the S&P Global Ex-U.S. BMI (up 10%). Information Technology led the way across the U.S. cap spectrum, possibly reflecting investors’ expectations regarding the potential impact of artificial intelligence. The S&P Composite 1500® combines…
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Celebrating 20 Years of the S&P 500 Equal Weight Index
The S&P 500® Equal Weight Index launched on Jan. 8, 2003, so Sunday marked 20 years since the index first allowed investors to measure the performance of egalitarian allocations among S&P 500 constituents. The index is now tracked by various investment products globally, and it has potential benchmarking applications. Exhibit 1 shows that the S&P…
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The S&P MidCap 400: An Overlooked Gem
The S&P MidCap 400® is an often-overlooked member of the S&P Composite 1500® series, despite outperforming the S&P 500® and S&P SmallCap 600® since 1994 (see Exhibit 1).1 The mid-cap U.S. equity index also weathered the market volatility slightly better during the first five months of 2022 by falling less than 11%, compared to a…
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Focusing on Factor Indices
Factor indices have two important uses. First, they can be used as benchmarks to help clients of specialist managers disentangle how much of the manager’s performance is attributable simply to factor exposure, and how much is attributable to the manager’s stock selection beyond the factor. Second, factor indices can be used as investment vehicles to…
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Examining a Custom Approach to Factors
How does viewing companies through the prism of price-to-sales influence risk/return? Explore a systematic approach to indexing factors with a focus on valuations with Justin Lowry, President and Chief Investment Officer at Global Beta Advisors and S&P DJI’s Michael Mell.
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U.K. Small Caps: Mind the Gap!
A gap between the 12-month performances of the S&P United Kingdom SmallCap and S&P United Kingdom SmallCap Select Index hints at a “junk rally” in U.K. stocks, but the longer-term data suggests that those looking to participate in an ongoing recovery in the world’s fourth-largest economy might be wise to maintain a selective approach. As…
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2021, IIS, Index Construction, Index Investment Strategy, institutional investor, investability, liquidity, profitability, S&P United Kingdom, S&P United Kingdom BMI, S&P United Kingdom SmallCap, S&P United Kingdom SmallCap Select, S&P United Kingdom SmallCap Select Index, Sherifa Issifu, small caps, smallcap, Smallcap Select, U.K., U.K. equities, United Kingdom
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- 2021, IIS, Index Construction, Index Investment Strategy, institutional investor, investability, liquidity, profitability, S&P United Kingdom, S&P United Kingdom BMI, S&P United Kingdom SmallCap, S&P United Kingdom SmallCap Select, S&P United Kingdom SmallCap Select Index, Sherifa Issifu, small caps, smallcap, Smallcap Select, U.K., U.K. equities, United Kingdom
Sizing Up Style Returns
After more than a decade of underperformance, and in stark contrast to Growth’s dominance for much of 2020, Value has made an impressive comeback so far in 2021, outperforming Growth around the world, including across the size spectrum in the U.S. In fact, Value’s YTD outperformance against Growth in mid and small caps is the…
Managing and Planning through Uncertain Times from an FA Perspective
In March 2021, we facilitated a discussion during S&P DJI’s virtual event with two financial advisors from Australia and Canada and an NZX representative who works closely with FAs in New Zealand. We asked them to reflect on the past year and how they pivoted with the onset of the Covid-19 pandemic. Andrew Neatt, TD…
Comparing Small-Cap Indices in Developed and Emerging Markets
Not all small-cap indices are identical. Indices within the same market cap range can have varied performance in different markets. We studied the S&P Developed SmallCap and S&P Emerging SmallCap for their performance, volatility, and sector allocation in different market segments. The S&P Global SmallCap is a widely used benchmark representing the global small-cap market….
The Case for Equal Weight Indexing
2020 witnessed outperformance from some of the largest S&P 500® companies as investors expected these firms to be better placed to navigate the COVID-19 environment. Exhibit 1 shows that this outperformance led to the largest names accounting for an unusually high proportion of the U.S. large-cap equity benchmark, and therefore having a bigger impact on…