Tag Archives: S&P 500
Combining Dividend Strategies
Throughout this year’s market turmoil, dividend strategies have been among the most reliable sources of relative, if not absolute, performance. Through June 21, 2022, e.g., when the S&P 500® had declined -20.4% YTD, the S&P 500 High Dividend Index (roughly speaking, the 80 highest-yielding stocks in the 500) sustained a loss of only -3.7%. The…
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2022, 500 Dividend Aristocrats, 500 High Dividend, Craig Lazzara, diversification, Dividend, Dividend Aristocrats, dividend growth, dividend yield, dividends, efficient frontier, equities, Factor Performance, high dividend, index combinations, index performance, institutional investor, S&P 500 Dividend, S&P 500 Dividend Aristocrats, US FA
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Bearing Through
On Monday, June 13, 2022, the S&P 500® officially entered bear market territory, having lost more than 20% of the value from its peak on Jan. 3, 2022. Just as we didn’t know on Jan. 3 that the market was going to decline, today we don’t know the full extent and duration of the new…
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Opportunity to Outperform
It’s been a challenging year for U.S. equities as investors adjust to a new rising rate regime, with inflation concerns at the forefront, coupled with uncertainty around future economic growth. Market commentators have argued that this environment is ideal for stock pickers to shine. This argument is correct, but with a caveat. With the S&P…
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Looking for Income – The Case for Dividends
For decades, traditional wisdom held that U.S. investors seeking stable income should turn to bonds. However, after more than a third of a century of declining yields, the current market environment may require a less traditional approach. Until recently, U.S. Treasuries have been a vehicle of choice for income-seeking investors: they provide a fixed stream…
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Seven Days in May
The performance of S&P 500®-based factor indices in May 2022 was generally favorable. Most factors outperformed the S&P 500, with the league table dominated by value and dividend tilts. The overall results for the month, however, obscure the intra-month dynamics: between the end of April and May 19, the S&P 500 fell by 5.5%, compounding…
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S&P 500 Weekly Options Now Expire Five Days a Week
Since their debut in 1983, S&P 500 options have grown into the most liquid index options in the market today.1 In 2005, Cboe introduced PM-settled S&P 500 weekly options (SPXW) to meet market demand for additional trading frequency. The first weekly options expired only on Fridays, with Monday and Wednesday expirations added over time. On…
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Value Resurgent, Part 2
The years between 2017 and 2021 were a frustrating half-decade for value investors. The S&P 500 Growth Index advanced at a compound annual rate of 24.1%, more than double the 11.9% return of its Value counterpart. Despite occasional (and sometimes prematurely celebrated) periods of success, Value underperformed Growth in four years of the five (and…
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Growth Managers’ Perfect Storm
Anyone familiar with our SPIVA reports will realize that most active managers fail most of the time. In 21 years of SPIVA data, a majority of large-cap managers underperformed the S&P 500 18 times; the most recent of the three exceptions came in 2009. Even in that context, 2021 was a year of above-average difficulty,…
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Green Pools: Evolving ESG Trading Ecosystems
Compared to the wide range of liquid, tradable instruments associated to more traditional benchmarks like the S&P 500®, the trading ecosystem of ESG-based investment products is still in its infancy. But, with the increased volume in listed futures linked to the S&P 500 ESG Index and S&P Europe 350® ESG Index, change is afoot. Of…
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2022, Canada FA, clean energy, climate, ecosystem, equities, ESG, ETF, ETFs, futures, IET, Index Investment Strategy, liquidity, market efficiency, Net Zero, Option, options, passive management, S&P 500 ESG, S&P 500 ESG Index, S&P DJI ESG, S&P Europe 350 ESG, S&P Europe 350 ESG Index, Sherifa Issifu, Trading, Trading Volumes, US, US equity, US FA, volumes
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Holding Period Returns
What is the appropriate observational period for evaluating an investment strategy? This question is important, because different observational periods can produce different conclusions. For example, for the first 11 weeks of 2022, one of our better-performing factor indices has been the S&P 500® Low Volatility Index. Through March 18, 2022, Low Vol had declined 4.7%,…