All Large cap articles
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White papersBlog | Has the PE recovery gone too far, too fast?
Forward PE multiples have fully recovered from their March lows, with most now at or approaching their highest levels of the past five years. The bounce has been particularly striking for the US large-cap Russell 1000, which has climbed more than 600 basis points to around 20× (a 15-year high), and for the FTSE Europe, up more than 500 basis points. The Russell 1000 multiple retains its sizable premium to those of its developed peers, which have converged around 14-15×.
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White papers
SPIVA® U.S. Scorecard
2019 was a remarkable year for equity markets in the U.S. and around the world. Boosted by an accommodative Fed policy, low unemployment, low inflation, and continued global growth, risk assets across the board did well—all of the benchmarks tracked in the SPIVA U.S. Scorecard had positive returns, with the S&P 500® Value leading the pack at 31.9%.
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White papers
Business as Usual for the S&P Paris-Aligned Climate Indices
On April 20, 2020, the S&P Eurozone LargeMidCap Paris-Aligned Climate Index (S&P Eurozone PA Climate Index) was launched (see press release). This index has been designed to align with recommendations from the Task Force on Climate-related Financial Disclosures and follow the new minimum standards for EU Paris-Aligned Benchmarks proposed by the EU,[1] while remaining as close as possible to its benchmark index, the S&P Eurozone LargeMidCap.
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White papers
Research paper: Russell 2000 – Forty+ Years of Insights
The Russell 2000 has become the preeminent representative of the US small-cap stock domain since its inception in 1984. More than 40 years of data enables deep insights into the relative performance and distinct characteristics of small-cap stocks. While there has been no clear performance advantage of small-cap stocks over large-cap stocks over the past four decades, there have been material differences over shorter periods, primarily driven by the underlying industry composition and economic sensitivities that distinguish large companies from their smaller counterparts.
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White papers
Performance Trickery, part 3
Success is hard to come by for active managers, as readers of our SPIVA reports know well. Sometimes what appears to be stock selection skill is in fact simply a byproduct of style drift across the capitalization scale.
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The Case for Technology Dividend Growers
It was once thought that companies from the Information Technology sector do not pay dividends. While this may have been the trend a long time ago, it certainly has not been for the last decade. Over the past 10 years, within the Information Technology sector of the S&P 500®, 26 companies initiated dividend payments and 59 companies increased their dividends at various points throughout those years, for a total of 376 dividend increases in the sector.
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White papers
Glory or Embarrassment?
Active funds generally lagged their passive benchmarks in 2019, but the market environment in 2020 has already shifted radically. Volatility has skyrocketed as the S&P 500® and other indices have fallen. Ironically, it is precisely in a time such as this, when absolute returns are hard to come by, that relative returns might be most readily attainable. This is true not just for traditional stock pickers, but also for active managers looking to express tactical views on the business cycle through sector rotation.
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White papers
Two Birds, One Stone: How the S&P Paris-Aligned Climate Index Concept Meets the Proposed EU Climate Benchmark Regulation and the Recommendations of the TCFD
As the world continues to pump the gas on a one-way street toward catastrophic climate change, market actors are attempting to slow down the traffic by limiting global temperature rise to within 1.5°C since pre-industrial levels.
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Blog | Russell 1000 leads Russell 2000 in stampede to safety
The outperformance of US large caps over their small-cap peers that began last June persisted through the March 2020 turmoil, underpinned by the extreme investor run for safer ground. The Russell 1000 fell 20.2% in Q1 2020, versus a drop of 30.6% for the Russell 2000. While both indexes enjoyed sharp rebounds in late March, only the Russell 1000 is back in positive territory for the longer term (up 4.9% since January last year). The Russell 2000 remains deeply in the red (down 12.9% for the same period).
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White papers
The Rising Importance of ESG Data
The demand from investors for environment, social, and governance (ESG) data and ESG products has never been stronger. This has triggered a growing industry of ESG data providers in the market. It is vital for S&P Dow Jones Indices (S&P DJI), when choosing ESG data providers who drive our ESG solutions to work with market-leading global practitioners. These practitioners must be able to demonstrate in-depth company analysis and robust governance structures, ensuring the quality of their data and our products.
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White papers
Through the Turbulence, a New Breed of ESG Indices Delivers
Have the new beta-like ESG indices delivered on their objectives, notwithstanding the market turmoil? The answer is yes, and then some. The S&P 500® ESG Index has provided low tracking error relative to the S&P 500 and similar risk, but also a better return.
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White papers
Insights: Tipping the scales of corporate profitability with gender-diverse boards
Published research links board diversity to increased corporate profitability, but a key question for investors is how much diversity is required to make a financially material difference to companies.
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2020 Long-Term Capital Market Assumptions Q1 update
Invesco Investment Solutions develops capital market assumptions (CMAs) that provide long-term estimates for the behaviour of major asset classes globally.
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White papers
S&P Composite 1500®: SPIVA
While the iconic S&P 500® is one of the world’s best known benchmarks, the S&P Composite 1500 (comprising the S&P 500, S&P MidCap 400®, and S&P SmallCap 600®) covers a broader spectrum of the capitalization of the U.S. equity market. Though the S&P 500 is often used as a measuring stick for large-cap fund performance (and rightly so), the S&P Composite 1500 can be a more appropriate benchmark for funds that are not limited to large-cap stocks.
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White papers
Small could be beautiful, as mega caps overreach
At 11 years and counting, this is the longest bull market in history - driven primarily by the record-breaking performance of mega caps, led by the technology giants. But the big names seldom maintain their position at the top of the S&P leader board from one decade to the next. Investors may be better placed focusing on small and mid caps, which are under-owned, cheaper and will benefit more quickly if the global economy picks up steam.
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White papers
Blog | After a banner year for global equities, what can we expect in 2020?
The strong rally in global equities in the fourth quarter capped a year of robust gains across global equity markets as reflected in FTSE Russell index performance. This included a more than 31% return for the US large-cap Russell 1000® Index with similar positive returns across other developed and emerging markets equities.
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Blog | US equity markets - a focus on size and style
As investors race toward the finish for 2019 and look ahead to 2020, US large caps continue to outperform small caps while growth still leads value. FTSE Russell market experts share insight on whether these trends are likely to continue into the new year
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White papers
Blog | China A50: is big still beautiful?
China A Shares have made headlines as major index providers have begun phasing them into their major global equity indexes. The inclusion process began recently, but FTSE Russell has offered China A Shares indexes since 2001, when China first started easing restrictions on A Shares foreign investment.
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White papers
Blending Low Volatility with Dividend Yield in the China A-Share Market
This paper examines the potential benefits of blending high dividend and low volatility strategies in the China A-share large-cap equity market.
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White papers
CFA Institute Blueprint for the EU Capital Markets Union for the European Parliamentary Legislative Period, 2019–2024
This blueprint addresses four principal topics: capital markets union, fintech, sustainable finance, and value for money. We worked together with our members from 23 CFA EU societies to publish a this paper describing the main policy and regulation challenges they encounter in their local financial market and underlining some possible solutions.
