All Factor Investing/Smart Beta articles
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White papersWatch Your Weighting Scheme
2022 has witnessed a recalibration across financial markets, as investors have digested the impact of higher interest rates amid elevated inflation.
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White papers
S&P 500 Factor Dashboard: Dive deep into factor performance in the U.S. market
The U.S. equity market rose sharply in October, finishing the month up 8.1%, a welcome rebound from the dismal performance of the first three quarters of 2022.
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Video
Why Core Construction Matters
Look inside the S&P 1500 and its core components as S&P DJI’s Hamish Preston explores the performance of Equal Weight and sector indices, as well as highlighting how positive earnings can influence performance.
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White papers
An Eventful Time for Event-Driven Investing
In a tough market environment, we believe company management teams and boards have to be more creative, daring and decisive; seeking event-driven opportunities is all about finding those taking the most impactful action.
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White papers
Refining the Quality Metrics
High-quality companies have always been appealing to investors. In fact, quality equity investing was documented as early as 1949 by Benjamin Graham in his original publication of The Intelligent Investor.
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White papers
S&P 500 GARP Index: Growth at Reasonable Price Anyone?
While growth stocks have the potential to grow at a rate significantly above the market, they have faltered during 2022 on the back of high inflation and rising interest rates. For market participants toying with the idea of when and how to get back in, the S&P 500® GARP (Growth at a Reasonable Price) Index may be worthy of consideration since it tracks companies with consistent sales and earnings growth, reasonable valuation, solid financial strength and strong earning power.
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White papers
SPIVA® Europe Mid-Year 2022
Since the first publication of the S&P Indices Versus Active Funds (SPIVA) U.S. Scorecard in 2002, S&P Dow Jones Indices has been the de facto scorekeeper of the ongoing active versus passive debate.
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White papers
Defense and Volatility
As the equity market has waned and waxed in 2022, investor interest has naturally turned toward ways of mitigating portfolio losses. Some factor indices can serve this goal, but investors searching for a defensive strategy need to define their search carefully.
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White papers
Low Volatility Holds Its Own
If the first six months of 2022 were defined by the woes of equities, the year’s second half has been defined (so far!) by a comeback. Since hitting a low in mid-June, the S&P 500® has gained an impressive 17.1% through Aug. 18, 2022.
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White papers
Dividend Growers in Inflationary Environments
With inflation being a major issue in the current economy, consumers are increasingly looking for ways to combat their loss of purchasing power. One way to achieve this is to have sources of income that keep pace with, or even exceed, the inflation rate. Over the past four decades, dividends have played an increasing role as a source of income, growing from just 2.88% of all income in December 1981 to 6.25% of all income in March 2022.
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White papers
The S&P Systematic Global Macro Index Outperformed YTD
U.S. equities rebounded in July thanks to earnings from mega-cap technology and major oil companies. The S&P 500® surged 9.2%, posting its best month since November 2020 and reversing its 8.3% loss in June. Nevertheless, the S&P 500 remains in correction territory, down 13.1% from its Jan. 3, 2022, record high.
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White papers
Time Sensitivity and Volatility Management
We all know that in the long run, the U.S. stock market has performed very well, compounding at well over 10% per year for nearly a century. We also know that sometimes the market performs very poorly, as the S&P 500®’s 20% decline in the first half of 2022 reminds us. For an investor who has the luxury of time, the combination of long-term gains with occasional pullbacks is a feature, not a bug; short-term declines are at worst a nuisance, and at best a buying opportunity.
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Webinar
Back to the future: Rediscovering the value of Value, with Research Affiliates
Founded in 2002, Research Affiliates® (“RAFI”) has been a leader in smart beta and asset allocation for 20 years. Since 2005, FTSE Russell has worked with Research Affiliates to bring its philosophy to life through indexes.
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White papers
Simplicity Yields Outperformance: The S&P 500 Low Volatility High Dividend Index
Last week, the S&P 500® officially entered a bear market, dropping more than 20% from its record close in January. However, not all equity indices suffered comparable losses, and one such example is the S&P 500 Low Volatility High Dividend Index. In fact, this index has outperformed by a wide margin so far in 2022.
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Video
A Closer Look at Indexing Equal Weight
How does indexing equal weight work in times of volatility and inflation? S&P DJI’s Craig Lazzara and Invesco’s Nick Kalivas discuss the key drivers behind equal-weight’s historical outperformance vs. the benchmark and what happens when equal weight is combined with factors and/or ESG.
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Video
Why What’s Inside the Style Box Matters
Take a closer look at the style spectrum with S&P DJI’s Garrett Glawe and explore how index construction influences risk/return.
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White papers
Looking for Income – The Case for Dividends
For decades, traditional wisdom held that U.S. investors seeking stable income should turn to bonds. However, after more than a third of a century of declining yields, the current market environment may require a less traditional approach.
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Video
Defending with S&P Dividend Aristocrats
How do S&P Dividend Aristocrats respond to volatility, inflation and rising rates? S&P DJI’s Pavel Vaynshtok and ProShares’ Simeon Hyman take a closer look at how these quality dividend growers have performed in different market environments.
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White papers
Could Your Beta Be Better?
In the first of our articles on working with Official Institutions, we look into the importance of regularly questioning the assumptions behind your benchmark.
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Video
Finding a Factor Fit
How can three decades of factor index performance history help investors make more informed decisions and measure the effectiveness of active managers? Join S&P DJI’s Craig Lazzara and Anu Ganti for a closer look at factor performance across a range of market environments.
