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Tag Archives: US FA

Jan 31, 2023

Net-Zero Targets and Temperature Alignment: Two Sides of the Same Coin?

For many people, a new year represents a chance to set new objectives and to tick (or scrap) the previous year’s list of resolutions. Whether this objective-setting exercise works is debatable. A similar phenomenon might be observed within companies. Scientific consensus maintains that net-zero emissions should be reached by 2050 if the world is to…

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Jan 30, 2023

What Performance Reversals Suggest

Investment results in 2022 were distinctly different from those of the recent past. The S&P 500®, which had doubled in the three years between 2019 and 2021, fell by more than 18% last year, and Exhibit 1 shows that there were regime shifts among factor indices as well. The dominance of Value over Growth in…

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Jan 27, 2023

GICS Changes Are Approaching

After the close on March 17, 2023, changes to the Global Industry Classification Standard (GICS®) structure will go into effect in GICS Direct and in S&P DJI’s indices. These changes will affect most sectors and will change what it means to be sector neutral. For example, Exhibit 1 compares the S&P 500 sector weights at…

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Jan 26, 2023

Surveying Style Indices

How can index construction inform style selection? S&P DJI’s Craig Lazzara takes a closer look at the S&P Style and S&P Pure Style Indices and how these different approaches to indexing Growth and Value are designed to help advisors align strategies with client objectives.

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Jan 25, 2023

Examining a Broad-Based Approach to ESG

Take a closer look at the index design and data powering S&P DJI’s headline ESG indices with Maggie Dorn and DWS’ Taylor Anderson.

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Jan 18, 2023

The Key to the S&P 500 ESG Index’s Outperformance: Avoiding the “Worst”

Now approaching its fourth anniversary since launch, the S&P 500® ESG Index seeks to reflect many of the attributes of the S&P 500 itself, while providing an improved sustainability profile as a result of an updated ESG score.1 With live performance data covering an extraordinary period—including two bear markets on either side of a growth…

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Jan 17, 2023

Style, Size, and Skewness

Two of the biggest reversals of 2022 compared to 2021 were the outperformance of smaller caps and the outperformance of value compared to growth. Both of these factors helped drive the S&P 500® Equal Weight Index’s recovery last year, as well as a decline in market concentration. As sector and style exposures are not independent,…

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Jan 16, 2023

Contextualizing Style Shifts

The S&P U.S. Style Indices are designed to provide broad and exhaustive exposure to the market’s value and growth segments. Our index methodology bifurcates a parent index’s market capitalization into roughly equal portions on the third Friday in December, using six measures shown in Exhibit 1.  Although the composition of style indices changes every year,…

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Jan 11, 2023

A Spider Spins a SPIVA Special

Thirty years ago, Bill Clinton was getting ready for his inauguration as the 42nd U.S. president, the S&P 500® closed a little over 430 and the latest edition of Business Week was trumpeting that 1993 would be “The Year of Picking Wisely” in the stock market. Meanwhile, a different kind of security was about to…

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Jan 11, 2023

Style Chicken or Sectoral Egg?

Anyone who has perused our S&P 500® Factor Dashboard for December 2022 (and it’s a shame if you have not) will recognize Exhibit 1 below. The horizontal axis represents the difference between the weighted average value and growth scores (at the beginning of 2022) for each of the 17 factor indices in our dashboard, while…

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