The low volatility anomaly.
Natural resources as an asset class have appealed to investors for various reasons, the predominant of which are portfolio diversification and inflation protection.
The size of the SSA market in Australia is evidenced in the S&P/ASX Supranational & Sovereign Bond 0+ Index, which shows that SSAs account for 15% of the broad S&P/ASX Australian Fixed Interest 0+ Index. Approximately 37 issuers are SSA and have issued, in aggregate, AUD 139 billion in debt across 175 lines.
Quality is often considered an alternative to growth investing, focusing on companies that exhibit signs of above-average growth, even if those companies may be more expensive than some of their counterparts.
As an investable concept, momentum is straightforward—purchase (avoid) stocks that have performed relatively well (poorly) recently.
The Dow Jones U.S. Select Short-Term REIT Index seeks to track REITs in sectors that typically have short-term lease durations, with the goal of creating a REIT index that is less sensitive to interest rate changes.
Tracking the Boomers... and Beyond
Alternatively weighted—or smart beta—strategies are among the fastest-growing and hottest investment topics. They range from the basic concepts of equal-weighted indices to dividend-yield-weighted strategies and the more exciting multi-factor indices we are seeing today.
Sustainable investing is one of the fastest-growing segments of the asset management industry.
Learn about tapping into the growth of the emerging market consumer with the Dow Jones Emerging Markets Consumer Titans 30 Index.
Take a look at how the S&P New China Sectors Index helps market participants see China’s changing economy in a novel way.
It’s An Election Year — What Does This Mean For The Market?
Index-based investing involves choosing investment products that track or mirror a market or segments of a market, such as the S&P 500® and S&P/ASX 200.
Shaun Wurzbach, Global Head of Financial Advisor Channel Management, S&P Dow Jones Indices (S&P DJI), chatted with Roger Scheffel and David Abrams of WST Capital Management about how innovation in the application of indices and exchange-traded funds (ETFs) led to a new and growing business division for Wilbanks, Smith & Thomas Asset Management.
In any home construction project, chances are a ladder will be used to reach a higher point.
Holding a combination of smart beta strategies in a blended portfolio could potentially provide a powerful source of diversification and more stable excess return outcomes.
The S&P GIVI® (Global Intrinsic Value Index) is a rules-based index series that is designed to deliver both low volatility and performance, weighted by intrinsic value rather than by traditional market capitalization. The indices are designed to provide those factor tilts while maintaining benchmark-like characteristics (low overall tracking error and similar region, country, and sector bets as the benchmark), along with high capacity.
To many market participants, it may seem like a “lost decade” for passive commodity indexing. After all, the most widely-recognized passive commodity index, the S&P GSCI (TR), lost about 10% annualized over the past 10 years. It is not the most impressive statistic, and what is worse is that the drop was not from a one-time crisis event. It was the result of an ongoing saga of dismal fundamental factors like slowing Chinese demand growth and an oversupply of oil from OPEC and U.S. producers, in conjunction with a range of unfavorable macro factors like a strong U.S. dollar, low interest rates, low inflation, and low growth. However, as with all crises, opportunities arise.
Read more about the S&P Leverage and Inverse Indices and how they can be a useful benchmark for leverage and inverse products.
Coupled with the fact that commodities are the basic ingredients that build society, commodities are a unique asset class and should be treated as such.
FA Talks is an interview series where industry thinkers share their thoughts and perspectives on a variety of market trends and themes impacting indexing.
In low-interest-rate environments with narrow credit spreads, preferred stocks behave similarly to bonds. In periods of high volatility, they behave more like stocks. When used as a complement to traditional fixed income asset classes, preferred securities may provide an opportunity for enhanced total return, while potentially reducing overall volatility.
The S&P Pan Asia ex-JANZ Health Care 50 seeks to track the 50
largest companies in the health care sector from developed and
emerging countries in the Asia-Pacific region, excluding Japan,
Australia, and New Zealand (JANZ).
Upcoming GICS sector changes have implications for both the new real estate and existing financials sectors.
With more and more eyes on the bond market, S&P Dow Jones Indices launched the S&P 500 Bond Index, a corporate-bond counterpart of the iconic S&P 500.