Tag Archives: U.S. Equity
Inside the Annual Style Indices Rebalance: Methodology, Process and Outcomes
The S&P U.S. Style Indices completed their annual rebalance in December 2025. Exhibit 1 shows that the 2025 changes were less pronounced than prior years: turnover for the S&P 500® Growth and S&P 500 Value was lower than the past three annual rebalances. Nonetheless, there were several shifts in index composition. The most significant movement was…
2026 Is the Year of the Stock Picker?
Recent market commentary has declared that 2025 was a brutal year for stock picking, with USD 1 trillion pulled out of active equity mutual funds during the year, according to the Investment Company Institute. The year was characterized by sharp double-digit swings for the S&P 500®, and in such environments filled with bouts of volatility,…
- Categories Equities, S&P 500 & DJIA
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Diversification across Durations
The S&P 500® surged to a third all-time closing high on Oct. 28, 2025, up 18% YTD. But the ride for U.S. equity investors has not always been a smooth one, with the index recouping sharp losses from earlier in the month on renewed tariff-related concerns and regional bank losses, coupled with AI bubble1 jitters…
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Rethinking U.S. Equity Exposure: A New Index Approach
With global fragmentation accelerating and geopolitical risks rising, the traditional assumptions underpinning U.S. equity investing may be due for a fresh look. While the S&P 500® has long served as the cornerstone for broad-based U.S. market exposure, globalization has reshaped the revenue profile of many constituents. Today, more than a quarter of the companies in…
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A Tale of Two Markets
After the volatility witnessed in early April, U.S. equities have staged a remarkable recovery over the past couple of weeks, with the S&P 500® up 1% YTD through May 15, 2025, reversing its 15% YTD decline through April 8, 2025. Thanks to optimism surrounding easing tariff tensions and strong Big Tech earnings, mega caps have…
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Waiting for a Bear
The S&P 500® recently entered a “correction,” a term used when the price index falls by more than 10% from its highs. It may yet decline further, the fact of which might tempt market participants to delay equity purchases until, say, the index has declined by 20%—which would define the start of a “bear market.”…
- Categories Equities, S&P 500 & DJIA
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Shifting Tides: Concentration, Dispersion and the S&P 500 Risk Landscape
Since the 2010s, the dynamics of large-cap U.S. equity risks have shifted. Fifteen years ago, the market was dominated by cycles alternating between risk-taking and risk aversion, often referred to as a “risk-on/risk-off” dynamic. A key feature of this period was the higher correlation between stock and sector performance, especially during market downturns. Exhibit 1…
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The S&P 500 Top 20 Select Indices: A Deep Dive into Mega-Cap Performance
In the first part of this blog series, we introduced the S&P 500® Top 20 Select Indices, including their construction and relevance to the equity market. Now, let’s delve deeper into the indices’ historical performance and relative performance to other similar indices. Perhaps unsurprisingly, the S&P 500 Top 20 Select Indices all had similar cumulative…
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Introducing the S&P 500 Top 20 Select Indices
The S&P 500® is widely regarded as the best single gauge of U.S. large-cap equities. Among the 500 companies in the index, the largest names have drawn the most attention due to their outperformance in recent years. To address the increasing interest in mega-cap stocks in the S&P 500, S&P DJI recently launched the S&P…
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Equity Exuberance and Fixed Income Foreshadowing
In the immediate aftermath of the 2024 presidential election, U.S. equities soared on Wednesday, November 6, with the S&P 500® up 3%, while small caps surged even higher, with the S&P SmallCap 600® up a substantial 6%. Subsequently, on Thursday, November 7, the much-anticipated Fed rate cut of 25 bps came to fruition. With two…
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