Tag Archives: S&P Emerging BMI

Why Should You Diversify?

When international stock returns lag, investors may feel tempted to double down on their home market. Historical data suggests the long-term benefits of diversifying globally. With US stocks outperforming non-US stocks in recent years, some investors have again turned their attention toward the role that global diversification plays in their portfolios. In the five-year period Read more […]

China: An Unlikely Stabilizer in Emerging Markets

As investors grapple with the economic fallout of COVID-19 and seek to understand its impact, China has become an unexpected stabilizing force in emerging markets. Despite being the epicenter of the outbreak, Chinese equities have experienced lower volatility, minimal currency fluctuation, and less exposure to falling oil prices in the recent market environment in comparison Read more […]

Emerging Markets: Enter the Dragon

The 2010s proved to be a disappointing decade for the S&P Emerging BMI, at least in relative terms. With a few weeks to go until the finish line, the index stands at a total return of 50% in U.S. dollars, compared with 160% for the S&P Developed BMI, as of Dec. 16, 2019. Although emerging Read more […]

S&P China 500 Declined 2.8% in Q2 2019; Gains Stood at 20.2% YTD

The S&P China 500 declined 2.8% in Q2 2019, as the U.S.-China trade tensions and threat of company sanctions weighed on returns, even as expectations for eased tensions improved. The decline followed the 23.6% Q1 2019 surge in the index, ultimately leading to overall healthy gains of 20.2% YTD. Chinese stocks generally lagged global benchmarks Read more […]

Are You Ready for China A-Share Inclusion?

In case you missed our country classification announcement on Dec. 5, 2018, we will be starting the process of adding China A-shares to S&P DJI global benchmarks (including the S&P China BMI and S&P Emerging BMI) in September 2019 at a partial inclusion factor of 25%. Given the size of China’s onshore equity market, the Read more […]

The Case for Emerging Market Stocks

Despite looming threats to global trade, emerging market stocks are a staple of diversified equity portfolios. Emerging countries are a diverse group, accounting for about 28.8% of real world GDP (measured in 2005 U.S. dollars) as of Nov. 12, 2018, according to FactSet. The comparable figure for U.S. production is 25.4%. Year-over-year growth in real Read more […]

China A-Share Accessibility and Its Impact on Indexing

In recent years, Chinese authorities have rapidly accelerated the pace of reforms aimed at making mainland-listed A-shares accessible to foreign investors.  Among other developments, the expansion of the Qualified Foreign Institutional Investor (QFII) quota, the introduction and subsequent expansion of the Renminbi Qualified Foreign Institutional Investor (RQFII) quota, and the launch of the Shanghai-Hong Kong Read more […]