Content (150)

  • Battle of Factors - Low Volatility versus High Beta

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    Battle of Factors: Low Volatility versus High Beta

    2020-07-13T11:11:00Z

    2020 has surprised us all with a number of firsts. Not only did we witness wild swings in the market from one quarter to the next, we also saw an unusual performance of commonly followed factors. While this blog will not attempt to predict factor performance, it will address recent factor behavior and put this behavior into historical context.

  • Wirecard’s Chronically Low ESG Scores Reflected Governance Challenges

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    Wirecard’s Chronically Low ESG Scores Reflected Governance Challenges

    2020-07-09T11:55:00Z

    On June 25, 2020, the German digital payment company Wirecard AG filed for insolvency following reports that over USD 2 billion in cash assets went missing. Wirecard’s stock has gone down 90% since the initial announcement, and the company’s lenders now face deep losses.

  • 360° of Climate – Indices for Every Objective

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    360° of Climate – Indices for Every Objective

    2020-07-08T11:47:00Z

    The Intergovernmental Panel on Climate Change (IPCC) has stated that “Human activities are estimated to have caused approximately 1.0°C of global warming above pre-industrial levels.” While current global climate policies aim to reduce baseline emissions, temperatures are still projected to rise by 3.0°C by 2100. The IPCC suggests limiting global temperature rise to 1.5°C from pre-industrial levels.

  • S&P PACT™ Indices - Empowering Investors Looking to Align with a 1.5°C Scenario

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    S&P PACT™ Indices: Empowering Investors Looking to Align with a 1.5°C Scenario

    2020-06-30T11:25:00Z

    How can indices provide greater insight into climate risk and help investors looking to go beyond traditional carbon reduction strategies? Take a closer look at the drivers behind the new S&P PACT™ Indices with S&P DJI’s Jaspreet Duhra and Andrew Innes.

  • S&P 500 Factor Dashboard - Dive deep into factor performance in the U.S. market

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    S&P 500 Factor Dashboard: Dive deep into factor performance in the U.S. market

    2020-06-29T11:03:00Z

    Growth and Momentum have stood supreme this year, outperforming in both the first and second quarter of 2020 and finishing wi th a positive return year-to-date. As spring turned to summer, however, every factor was overtaken by the rocket -like recovery in High Beta, which rode hopes for a rapid economic recovery to a 38% gain in Q2.

  • Taking Up the Challenge of Turbulent Markets with ESG and Multi-Assets

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    Taking Up the Challenge of Turbulent Markets with ESG and Multi-Assets

    2020-06-19T11:30:00Z

    After a long bull market, the COVID-19 pandemic has shaken the financial markets and put the question of how to earn a smooth return stream over a long period of time back on the table. This has given rise to a strengthening of conviction toward environmental, social, and governance (ESG) investing and risk management.

  • Divesting, Decarbonizing, De-risking, and Aligning with 1.5C - Climate Change Investing in 2020

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    Divesting, Decarbonizing, De-risking, and Aligning with 1.5C: Climate Change Investing in 2020

    2020-06-18T10:21:00Z

    Investors recognize that climate change is one of the most pressing threats to society, and that alignment offers potential opportunities for capital appreciation. In spite of that, choice paralysis can creep in when investors face the ever-growing number of climate change products, many of which operate using different terminologies and objectives.

  • Is ESG a Factor? The S&P 500 ESG Index’s Steady Outperformance

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    Is ESG a Factor? The S&P 500 ESG Index’s Steady Outperformance

    2020-06-17T15:57:00Z

    Since launching the S&P ESG Index Series, we have been continuously asked the same question: Can environmental, social, and governance (ESG) be considered a factor that outperforms? In short, since its launch in January 2019, the S&P 500® ESG Index has outperformed.

  • Active Managers - No Place to Hide

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    Active Managers: No Place to Hide

    2020-06-10T08:40:00Z

    In the first quarter of 2020, the global economy experienced not a slowdown, but a shutdown. As COVID-19 swept the world, outsized market movements became the new norm. The S&P 500® finished its worst quarter (-19.6%) since 2008’s global financial crisis. International equities fared even worse as the S&P International 700 lost 22.4%. While investors were catching their breath after the February-March sell-off, the S&P 500 rebounded in April and posted its largest monthly gain (12.8%) since 1987.

  • Looking Under the Hood of S&P 500 Information Technology Performance

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    Looking Under the Hood of S&P 500 Information Technology Performance

    2020-06-09T09:09:00Z

    Has the IT sector done well because of the quality factor, or is it the other way round? S&P DJI’s Anu Ganti takes a closer look at the relationship between sectors and factors to explore what’s driving IT’s climb over the past 12 months.

  • S&P Pure Growth Indices – Attributes and Performance Drivers

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    S&P Pure Growth Indices – Attributes and Performance Drivers

    2020-06-03T09:48:00Z

    The S&P 500® has had a wild ride in 2020. The index hit an all-time high in February, then dropped 33.8% to the bottom in March due to the COVID-19 pandemic, and then rallied 32.6% by May 22. During this turbulent time, the S&P 500 Pure Growth, while declining along with markets, ultimately outperformed its benchmark by 4.92% (see Exhibit 1). The following analysis investigates attributes of this outperformance.

  • Transition to a 1.5°C World with the S&P Paris-Aligned & Climate Transition Indices

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    Transition to a 1.5°C World with the S&P Paris-Aligned & Climate Transition Indices

    2020-06-02T10:29:00Z

    The landmark Paris Agreement marked a sea change in the global fight against climate change. Backed by empirical evidence from the UN Intergovernmental Panel on Climate Change (IPCC), ambition has since grown to limit global temperature rise to 1.5°C since pre-industrial levels.