All Large cap articles
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Blog | Will value resurgence drive a Santa Claus rally? Insights from global index provider FTSE Russell
US equity markets have continued their Q4 surge, with market watchers hoping for a traditional Santa Claus rally as we approach the end of a tumultuous year. Although, one untraditional factor, value stocks, has played a more influential role in the recent market rise.
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Digital transformation: think beyond the tech mega caps
2020 has seen the world’s largest tech companies get bigger and the global digital transformation grow wider, but what does the future have in store?
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Blog | Sector differences explain “cap-gap” for Malaysian equities in the year of the global pandemic
Sector weightings have been a key driver of the performance difference between mid- and large-cap Malaysian stocks in 2020, according to new insight from global index provider FTSE Russell and Bursa Malaysia.
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The Dangers of Extrapolation
At the end of October, the year-to-date total return of the S&P 500® was barely positive (2.77%), but was well ahead of the returns of the S&P MidCap 400® (-6.63%) and the S&P SmallCap 600® (-13.06%). In November, the 500TM performed very well (10.95%), but the 400TM (14.28%) and the 600TM (18.17%) did much better.
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Too many equity managers, mediocre investment outcomes
How hiring too many investment managers drives unexpected outcomes
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Factoring it all in - Q3 2020
The blistering pace of equity returns set in the second quarter continued in July and August as the global mega-cap IT growth rally marched on. However, as uncertainty around U.S. elections, diminishing prospects for a second round of U.S. pandemic stimulus, and rising prospects of a hard Brexit began to come into focus, the market retreated in September.
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Blog | Large-cap growth led Japan equities in 2020, according to 25th Russell/Nomura reconstitution
Large-cap growth stocks have continued to drive Japan equity market performance, according to results of the 25th annual Russell/Nomura Japan Equity Indexes reconstitution, which concluded after the Japan equity market closed on Thursday, November 19
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Finding Alpha in an Increasingly Concentrated Market
U.S. equity market concentration has increased significantly in recent years. This raises concerns about the broader market being vulnerable to the performance of the dominant few. It also creates distinct challenges for identifying alpha opportunities across the broader large cap universe.
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Building resilience with a smarter US growth equity allocation
It’s no secret that global investors have reaped significant rewards over the last several years for holding exposure to US equities—and growth equities, in particular. A large portion of total returns has come from the leadership of a few familiar mega-capitalisation companies that generate headlines ad nauseam in the daily news cycle.
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Blog | The Russell 2000 outperforms in October market maelstrom
In the last full month before the US election, and amid the Covid-19 maelstrom that swept most equity markets under water, the US Russell 2000 was among the few to stay afloat. The small-cap index rose 2.1% in October, strongly outpacing losses of 2.4% for the Russell 1000 and of 2.5% for the FTSE All-World Index. Outperforming small-cap health care and bank stocks were the index’s life rafts in the storm.
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Why Tech Bubble Fears are Overdone
The tech sector’s impressive performance and increasing concentration in indexes has led to concerns of expensive valuations—with some fearing that we could be in bubble territory. In our view, such worries are not justified, and we believe tech’s outlook remains healthy.
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Blog | What’s been driving US equities? insights from FTSE Russell, CME Group & iShares
FTSE Russell recently hosted market, derivatives and ETF experts from FTSE Russell, CME Group and iShares in a special webinar focused on US equity market outperformance in 2020 and the drivers behind the underlying differences in performance between US small- and large-cap stocks.
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Blog | Russell US sector tune-up provides more direct reflection of financials
Global index provider FTSE Russell recently migrated its Russell US Indexes sector framework to the Industry Classification Benchmark (ICB) framework from Russell Global Sector (RGS). Notably, under the new framework, nine Russell US index sectors have expanded to 11 ICB industries, and Real Estate Investment Trusts (REITs) have moved out of the Financial Services sector and into a new Real Estate industry category.
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Market review: a volatile month for risky assets amid rising uncertainty
A correction in tech stocks, a sharp increase in coronavirus infections and growing political uncertainties made for a volatile month for risky assets.
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Reconciling Financial and Non-Financial Performance
The performance of cap-weighted indices suffers from a high concentration, negative exposure to long-term-rewarded risk factors and does not take account of ESG or Low Carbon objectives.
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TalkingPoints: How to Engage ESG in More Meaningful Ways
The outperformance of funds that take environmental, social and governance (ESG) issues more seriously than their peers has reinforced why investors might want to integrate these factors into portfolios via the type of tools that S&P Dow Jones Indices has developed.
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Blog | 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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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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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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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.