Tag Archives: U.S. equities

Jan 25, 2021

S&P 400 and S&P 600: Why Consider

Most investors are familiar with the S&P 500 index. Its mid and small cap counterparts, the S&P 400 and S&P 600 don’t get quite the same coverage in the financial press. Yet these are powerful tools that must not be overlooked. 1. Diversification of the Indices 2020 was indeed a peculiar year for US equities….

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Dec 10, 2020

Learning from Sector Changes in the S&P Composite 1500

The S&P Composite 1500® serves as a benchmark for around 90% of the U.S. equity market and offers a comprehensive perspective on it.1 Companies in the S&P Composite 1500 are classified into sectors based on the Global Industry Classification Standard (GICS®). As with the benchmark, the S&P Composite 1500 Sector Indices are weighted by float-adjusted…

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Dec 2, 2020

A European Perspective on the U.S. Mid-Cap Sweet Spot

Should European investors be looking beyond large-cap U.S. equities for core exposure? S&P DJI’s Tim Edwards and State Street Global Advisors’ Rebecca Chesworth explore the case for U.S. mid-caps through broad and tactical sector exposures.  

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Nov 17, 2020

Tesla Added to the S&P 500

Yesterday, S&P Dow Jones Indices announced that Tesla will be added to the S&P 500® prior to the open on Monday, Dec. 21, 2020. The Index Committee has not yet determined which current constituent Tesla will replace, nor how Tesla will be added to the index—because of its size, S&P DJI is seeking feedback through…

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Oct 26, 2020

Large and In Charge? Giant Firms atop Market Is Nothing New.

While the types of businesses most prominent in the market vary through time, the fact that a small subset of companies’ stocks account for an outsized portion of the stock market is not new. Moreover, research suggests these stocks’ best performance might be in the rearview mirror. The takeaway is that relying on well-established investing…

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Oct 6, 2020

Is the S&P 500 Doing Its Job?

On Sept. 4, 2020, S&P DJI’s U.S. Index Committee announced that Etsy, Teradyne, and Catalent were being added to the S&P 500®, replacing H&R Block, Coty, and Kohl’s. The changes attracted significant market attention and sparked a discussion around the names being added to the index, as well as those that were not. These updates…

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Sep 29, 2020

SPIVA® U.S. Mid-Year 2020 Scorecard: Convergence to Underperformance

According to the SPIVA U.S. Mid-Year 2020 Scorecard, most active fund managers in the U.S. underperformed the market over the past year. Among actively managed domestic equity funds, 67% lagged the S&P Composite 1500® during the 12 months ending June 30, 2020, and the majority of active managers underperformed their benchmarks in 11 out of…

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Sep 23, 2020

Profitability, Liquidity, and Investability: The Key Drivers of Long-Term Outperformance of S&P SmallCap 600® versus Russell 2000

The S&P 600TM has outperformed the Russell 2000 since its launch in 1994. From Dec. 31, 1994, to Aug. 30, 2020, the S&P SmallCap 600 had an annualized return of 11.77% (with an annualized volatility of 18.96%) versus the Russell 2000’s annualized return of 10.49% (with an annualized volatility of 19.70%). The historical performance divergence…

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Sep 22, 2020

A Practical Look at How Risk is Shifting in Sectors

How can the relationship between sectors and factors help investors identify market regime changes and inform allocations? S&P DJI’s Anu Ganti and Hamish Preston take a closer look at market trends through the lens of S&P Composite 1500® data.     Learn more: https://www.spglobal.com/spdji/en/research/article/the-sp-composite-1500-an-efficient-measure-of-the-us-equity-market/

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Sep 14, 2020

Not Your Father’s Tech Sector

As of the end of August 2020, the S&P 500® Information Technology sector had risen a remarkable 36% YTD. Such outstanding relative performance of course reminds us of the late 1990s, when the markets experienced a technology bubble and subsequent bust. One notable resemblance to the late 1990s is Information Technology’s weight in the S&P…

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