Tag Archives: US FA
High-Capacity Construction: The S&P Dividend Growers Indices
In our past blog, Introducing the S&P Dividend Growers Indices, we highlighted the key objectives and investment rationale behind the S&P U.S. Dividend Growers Index and S&P Global Ex-U.S. Dividend Growers Index. We showed that companies that have consistently increased dividends over consecutive years displayed greater financial strength through being generally more profitable with less…
The S&P 500 and DJIA: Divergent Paths to Similar Results
The S&P 500® and the Dow Jones Industrial Average® (DJIA) are two of the best known and most used indices in the world. They are both designed to represent U.S. large-cap companies. As we detailed in a recent paper, the S&P 500 and DJIA have similar long-term risk/return profiles. As of April 30, 2021, the…
- Categories Equities, S&P 500 & DJIA
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- Equities, S&P 500 & DJIA
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Introducing the S&P Dividend Growers Indices
Dividends are an important part of the investment toolkit, contributing 36% to the total return of the S&P 500® since 1936.1 This sizable contribution has been particularly welcome during the multi-year low interest rate environment and, more recently, as the world has faced economic dislocations induced by COVID-19. In addition to dividend income, investors have…
Valuing Equal Weight
We have previously discussed the impact of Equal Weight’s rebound on its exposure to the momentum factor. We now turn our attention to its exposure to the value factor, as the recovery in smaller caps and value stocks has been an important tailwind for the strategy. The S&P 500® Equal Weight is typically biased toward…
A Change in Fortune
Three months ago, we observed that times of severe underperformance for Equal Weight can bode well for future performance. This reflection had become reality by the end of February. After almost four years of underperformance, the S&P 500® Equal Weight Index outperformed the S&P 500 by 1.6% over the past 12 months, as we see…
From Large Cap to All Cap: Introducing the S&P MidCap 400 ESG and S&P SmallCap 600 ESG Indices
Whoever said size doesn’t matter, wasn’t talking about ESG. For years, we’ve known that larger companies tend to fare better when it comes to sustainability.1 But thanks to the launch of the S&P MidCap 400® ESG Index and S&P SmallCap 600® ESG Index, that may be about to change. As per the S&P ESG Index…
- Categories ESG
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Measuring Innovation: Essential Insights in an Era of Disruption to the Global Economy
Introducing the S&P Kensho Moonshots Index – Next-Generation Innovators Innovation risk ranks as one of the most significant existential threats faced by companies today. The Fourth Industrial Revolution, and the attendant widespread disruption to the global economy, has significantly amplified an already established trend: accelerating change and the ever-decreasing lifespans of companies, or what the…