When S&P DJI’s first green bond indices, such as the S&P Green Bond Index, where launched in 2014, the flurry of new products related to the indices was seen as a key indicator that the green bond market was rapidly scaling new heights.
There has been a market inflection with regard to the integration of climate risk and opportunities analysis into investment decisions.
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 (SPIVA) U.S. Scorecard in 2002.
Index-based investing has enjoyed significant growth in the past 20 years, and has evolved from simply benchmarking and replicating the broad market to indexing factors.
With a wealth of smart beta indices to choose from, market participants may find it difficult to decide when each factor-based strategy is best suited to deliver returns. Is it wise to rely solely on the performance of one factor? If not, what multi-factor approaches could be considered and how effective are they?