Tag Archives: S&P 500 Momentum Index
Inside the September 2026 S&P 500 Momentum Index Reconstitution
The S&P 500® Momentum Index tracks the top 20% of S&P 500 stocks by 12-month risk-adjusted price momentum.1 Backed by persistent market trends, the index has outperformed significantly relative to the broader market in recent years (see Exhibit 1). The S&P 500 Momentum Index rebalances semiannually after the close of the third Friday of March…
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Mondo Mashups
Whether you call it soccer or football, there’s no denying the World Cup was a blast for North Americans and visitors alike. Off the field, one of the most enjoyable spectator sports was watching camaraderie emerge from road trips and cultural mashups. Whether it was the Tartan Army firing up the Miami Marlins, Samurai Blue…
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S&P Momentum Indices Shine in April Rally
Momentum strategies, which tend to be known for performing well in trending markets, experienced a historically strong rebound in April. The S&P 500® Momentum Index, S&P MidCap 400® Momentum Index and S&P SmallCap 600® Momentum Index all posted double-digit gains, surpassing their respective benchmarks (see Exhibit 1). Notably, the April performance of the S&P 500…
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Big Tech, Breadth and Balance
U.S. equity markets have been whipsawed in the past few days, with initial optimism surrounding Big Tech earnings powering the S&P 500® to an intraday high, and subsequent disappointing reactions to earnings coupled with the Fed’s decision to hold rates steady leading to a sharp retreat for The 500®. The pullback in Tech and the…
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…
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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…
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Tech Tonics
U.S. equities have staged a remarkable recovery in the past few months, shrugging off inflation concerns, trade tensions and geopolitical risks, all of which has culminated in multiple all-time highs. Meanwhile, the significant outperformance of the momentum factor, or the continued strength of winning stocks, coupled with the dominance of a few mega-cap companies, especially…
Mom’s Recipe: Sectors, Stocks and Size
The S&P 500® Momentum Index has been one of the best-performing of all the S&P 500 Factor Indices in the past few years. A closer inspection of the drivers of performance identifies constituent selection as paramount, highlighting the importance of dynamically retreating from the largest of the mega caps in periods when smaller names took…
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Size, Momentum and Value
Burgeoning optimism surrounding impending potential Fed rate cuts and a rotation toward smaller-cap stocks in July may have been short-lived, as global market jitters led to the trouncing of stocks across the capitalization spectrum on Aug. 5, 2024. The S&P 500® plunged 3%, its largest daily decline in almost two years. Despite this recent pullback,…
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S&P Momentum Indices Leading the Pack
Momentum strategies, which tend to thrive in trending markets, have recently delivered strong performance due to continued economic strength and positive market sentiment. In the past 12 months, the S&P 500® Momentum Index posted notable outperformance compared with some other S&P 500 factors, as well as the S&P 500 itself (see Exhibit 1). In this…
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