Tag Archives: U.S. sectors
What’s Inside the Real Estate Select Sector?
Explore how a rules-based approach to tracking real estate companies in the S&P 500® impacts dividend yield and diversification.
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ETFs, indexing real estate, indexing REITs, indexing sectors, real estate companies, real estate development, real estate investment trusts, real estate management, real estate sector, Real Estate Select Sector, S&P 500, S&P Dow Jones Indices, sector, Sector Diversification, Select Sector Indices, select sectors, U.S. equities, US sectors
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- ETFs, indexing real estate, indexing REITs, indexing sectors, real estate companies, real estate development, real estate investment trusts, real estate management, real estate sector, Real Estate Select Sector, S&P 500, S&P Dow Jones Indices, sector, Sector Diversification, Select Sector Indices, select sectors, U.S. equities, US sectors
Defensive Dynamics
2022 has been a tumultuous year characterized by reversals, with the S&P 500® down 20% in the first six months of the year and rebounding by 9% in July. In this uncertain environment, seeking defensive exposures via sectors could mitigate portfolio risk, but a nuanced perspective may be required to understand which sectors offer the…
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Tumultuous Trends
The S&P 500® posted its worst first-half performance since 1970,1 as inflation concerns, Fed rate hikes and slowing economic growth have weighed on markets. Mega caps were hit particularly hard, with the S&P 500 Top 50 posting a loss of 22%, underperforming the S&P 500 by 2%. Exhibit 1 shows that Information Technology was the…
- Categories Equities, Factors, S&P 500 & DJIA
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These Go to 11: Diversification with S&P 500 Sectors
Many strategies (including passive ones) hold large allocations to Information Technology. A “barbell” approach can mitigate risk from high exposure to one sector by pairing it with another. Do you remember sending your first email? For many, it was likely around the mid-1990s when a “googol” was still 10^100 rather than a verb and the…
- Categories S&P 500 & DJIA
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- S&P 500 & DJIA
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The S&P MidCap 400: An Overlooked Gem
The S&P MidCap 400® is an often-overlooked member of the S&P Composite 1500® series, despite outperforming the S&P 500® and S&P SmallCap 600® since 1994 (see Exhibit 1).1 The mid-cap U.S. equity index also weathered the market volatility slightly better during the first five months of 2022 by falling less than 11%, compared to a…
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Sizing Sectors
After peaks in S&P 500® concentration, the S&P 500 Equal Weight Index has tended to outperform, suggesting that there is a relationship between changes in concentration and the relative performance of equal weighting. But, does this relationship also occur at the sector level? Using the historical adjusted HHI (Herfindahl-Hirschman Index), we’ve previously established that concentration…
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- Equities
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The S&P Composite 1500®: An Efficient Measure of the U.S. Market
The S&P 1500 serves as both a benchmark indicator for U.S. equity market performance and as a basis for passively replicating investment products that aim to deliver a “market” return. Our new paper examines the index from both these perspectives, and compares the S&P 1500 with other U.S. equity market indices. Here are a few…
- Categories Equities, S&P 500 & DJIA
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Large-Cap Real Estate Was the Top U.S. Segment in May
After four consecutive months of gains by the S&P 500®, the U.S. equity market broadly declined in May. The S&P 500, S&P MidCap 400®, and S&P SmallCap 600® declined 6.6%, 8.1%, and 8.9%, respectively. The primary catalyst was the renewed trade tension between the U.S. and China, which reversed course from the optimism coming out…
- Categories Equities, S&P 500 & DJIA
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Looking Through The Sector Lens
We’ve recently noted that this month’s market turmoil created a radical reversal of factor returns, poking holes in this year’s momentum bubble. A similar trend has occurred within sectors. During the first nine months of 2018, Consumer Discretionary and Info Tech dominated performance, as seen in Exhibit 1. For the first two weeks of October,…
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Some Bite-Sized Highlights from our Sectors Webinar
We recently hosted a webinar examining the potential value in a sector-based approach to portfolio construction, their application in navigating different market environments, and some key considerations for those adopting sector-based strategies. You can view a replay of the event here; a few highlights might whet the appetite… The Global Importance of U.S Equity Sectors…
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