Content (111)
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White papersSeeking Volatility Protection Using Indices
With markets fluctuating between “risk-on” and “risk-off” environments, shifts in economic conditions can pose significant challenges for investors. Exhibit 1 shows events throughout the current market cycle causing dramatic spikes in volatility and large drawdowns. With more of these likely in the future, as our long bull market cycle ages, how do investors best position portfolios to respond?
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White papers
Webinar replay: Using ESG Data to Simplify the Complex
A complimentary webinar for investment professionals
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White papers
SPIVA® Europe Year-End 2019
S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate since the first publication of the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard in 2002. The SPIVA Europe Scorecard measures the performance of actively managed European equity funds denominated in euro (EUR), British pound sterling (GBP), and other European local currencies against the performance of their respective S&P DJI benchmark indices over 1-, 3-, 5-, and 10-year investment horizons.
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White papers
Multi-Asset Income Strategies in a Low Interest Rate Environment
One of the most significant characteristics of the post-financial crisis world has been the global persistence of low, or even negative, interest rates. The entire U.S. Treasury curve yielded below 1% for the first time in history on March 9, 2020, in the wake of the COVID-19 pandemic, before the long end reverted recently on fiscal stimulus reports.
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29 Days Later
On February 19th, the S&P 500® closed at an all-time high of 3386; last night, exactly one month later it closed at 2409, a 29% decline from the high. Let’s take a moment to reflect on what’s happened over the last month.
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The Importance of Asset Class Diversification: A Performance Analysis of the S&P MARC 5% Index
Recent selloffs in the equity markets and a significant rise in volatility signal an end to the 11-year bull market (Bye Bye Bull Market: Reaction to Coronavirus). While most broad market domestic equity indices have declined, the performance of the S&P MARC 5% Index (ER) has held up (1.84%). The answer to its resiliency lies in its index construction, which attempts to maximize diversification benefits.
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White papers
With VIX Above 80, Expect 5% Daily Swings in the S&P 500
Volatility – it is sometimes said – takes the elevator up but takes the stairs down. Like seismic activity, volatility can rise precipitously, but tends to decay more slowly; aftershocks and tremors continue to roil markets after any major repricing occurs. The practical consequence is that, once the markets become volatile, they tend to remain so for some time. For the short term at least, outsized daily moves will be the new normal.
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White papers
Showtime for Active Managers?
The rapid spread of coronavirus and oil price concerns have whipsawed U.S. equities since the S&P 500® reached its all-time high on Feb. 19, 2020. On March 16, 2020, the index plummeted by 12%, its worst decline since October 1987; as of the close of trading on March 18, 2020, losses for the S&P 500 amounted to 29%. Market commentators have argued that in this environment, active management has an advantage over index funds.
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White papers
Treasuries Market Flashes Red, Fed Unleashes Tsunami
As global financial markets grapple with assessing the economic impact of COVID-19, U.S. Treasury yields reached unprecedented levels. On March 9, 2020, the yield on the 10-year U.S. Treasury Bond fell to an intra-day low of 0.32%. This was a drop of more than 125 bps from just three weeks earlier. As market participants fled risk assets, the flight to quality drove the entire U.S. yield curve below 1.00%.
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White papers
Equity Liquidity at a Reasonable Price
The fall in equity market values since February’s peak has been sudden and dramatic. During this period, the equity markets have functioned well at their primary task of facilitating price discovery at a time when values were changing rapidly.
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Low Volatility in Europe and Asia
By this point, the infamous COVID-19 has made its way around the world and wreaked havoc through equity markets across the globe. We’ve already highlighted the value of protection in the U.S. and Canada.
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White papers
The Best Offense Is Defense – Why VEQTOR Outperformed Last Week
Six minutes after trading began on the New York Stock Exchange on March 9, 2020, the S&P 500® plummeted 7% and market-wide circuit breakers kicked in for the first time since the stock market crash of Oct. 27, 1997.
