{“web page”:0,”12 months”:2022,”monthnum”:12,”day”:12,”identify”:”examining-the-effectiveness-of-defensive-strategy-indices”,”error”:””,”m”:””,”p”:0,”post_parent”:””,”subpost”:””,”subpost_id”:””,”attachment”:””,”attachment_id”:0,”pagename”:””,”page_id”:0,”second”:””,”minute”:””,”hour”:””,”w”:0,”category_name”:””,”tag”:””,”cat”:””,”tag_id”:””,”writer”:””,”author_name”:””,”feed”:””,”tb”:””,”paged”:0,”meta_key”:””,”meta_value”:””,”preview”:””,”s”:””,”sentence”:””,”title”:””,”fields”:””,”menu_order”:””,”embed”:””,”category__in”:[],”category__not_in”:[],”category__and”:[],”post__in”:[],”post__not_in”:[],”post_name__in”:[],”tag__in”:[],”tag__not_in”:[],”tag__and”:[],”tag_slug__in”:[],”tag_slug__and”:[],”post_parent__in”:[],”post_parent__not_in”:[],”author__in”:[],”author__not_in”:[],”ignore_sticky_posts”:false,”suppress_filters”:false,”cache_results”:true,”update_post_term_cache”:true,”lazy_load_term_meta”:true,”update_post_meta_cache”:true,”post_type”:””,”posts_per_page”:”5″,”nopaging”:false,”comments_per_page”:”50″,”no_found_rows”:false,”order”:”DESC”}
[{“display”:”Craig Lazzara”,”title”:”Managing Director, Core Product Management”,”image”:”/wp-content/authors/craig_lazzara-353.jpg”,”url”:”https://www.indexologyblog.com/author/craig_lazzara/”},{“display”:”Fei Mei Chan”,”title”:”Director, Core Product Management”,”image”:”/wp-content/authors/feimei_chan-214.jpg”,”url”:”https://www.indexologyblog.com/author/feimei_chan/”},{“display”:”Tim Edwards”,”title”:”Managing Director, Index Investment Strategy”,”image”:”/wp-content/authors/timothy_edwards-368.jpg”,”url”:”https://www.indexologyblog.com/author/timothy_edwards/”},{“display”:”Hamish Preston”,”title”:”Director, U.S. Equity Indices”,”image”:”/wp-content/authors/hamish_preston-436.jpg”,”url”:”https://www.indexologyblog.com/author/hamish_preston/”},{“display”:”Berlinda Liu”,”title”:”Director, Multi-Asset Indices”,”image”:”/wp-content/authors/berlinda_liu-191.jpg”,”url”:”https://www.indexologyblog.com/author/berlinda_liu/”},{“display”:”Fiona Boal”,”title”:”Head of Commodities and Real Assets”,”image”:”/wp-content/authors/fiona_boal-317.jpg”,”url”:”https://www.indexologyblog.com/author/fiona_boal/”},{“display”:”Anu Ganti”,”title”:”Senior Director, Index Investment Strategy”,”image”:”/wp-content/authors/anu_ganti-349.jpg”,”url”:”https://www.indexologyblog.com/author/anu_ganti/”},{“display”:”Jim Wiederhold”,”title”:”Director, Commodities and Real Assets”,”image”:”/wp-content/authors/jim.wiederhold-380.jpg”,”url”:”https://www.indexologyblog.com/author/jim-wiederhold/”},{“display”:”Koel Ghosh”,”title”:”Head of South Asia”,”image”:”/wp-content/authors/koel_gosh-372.jpeg”,”url”:”https://www.indexologyblog.com/author/koel_gosh/”},{“display”:”Phillip Brzenk”,”title”:”Head of Multi-Asset Indices”,”image”:”/wp-content/authors/phillip_brzenk-325.jpg”,”url”:”https://www.indexologyblog.com/author/phillip_brzenk/”},{“display”:”Aye Soe”,”title”:”Managing Director, Global Head of Core and Multi-Asset Product Management”,”image”:”/wp-content/authors/aye_soe-350.jpg”,”url”:”https://www.indexologyblog.com/author/aye_soe/”},{“display”:”Howard Silverblatt”,”title”:”Senior Index Analyst, Product Management”,”image”:”/wp-content/authors/howard_silverblatt-197.jpg”,”url”:”https://www.indexologyblog.com/author/howard_silverblatt/”},{“display”:”Michael Orzano”,”title”:”Senior Director, Global Equity Indices”,”image”:”/wp-content/authors/Mike.Orzano-231.jpg”,”url”:”https://www.indexologyblog.com/author/mike-orzano/”},{“display”:”John Welling”,”title”:”Director, Global Equity Indices”,”image”:”/wp-content/authors/john_welling-246.jpg”,”url”:”https://www.indexologyblog.com/author/john_welling/”},{“display”:”Maria Sanchez”,”title”:”Director, ESG Index Product Strategy, Latin America”,”image”:”/wp-content/authors/maria_sanchez-243.jpg”,”url”:”https://www.indexologyblog.com/author/maria_sanchez/”},{“display”:”Wenli Bill Hao”,”title”:”Senior Lead, Strategy Indices”,”image”:”/wp-content/authors/bill_hao-351.jpg”,”url”:”https://www.indexologyblog.com/author/bill_hao/”},{“display”:”Reid Steadman”,”title”:”Managing Director, Global Head of ESG & Innovation”,”image”:”/wp-content/authors/reid_steadman-328.jpg”,”url”:”https://www.indexologyblog.com/author/reid_steadman/”},{“display”:”Shaun Wurzbach”,”title”:”Managing Director, Head of Commercial Group (North America)”,”image”:”/wp-content/authors/shaun_wurzbach-200.jpg”,”url”:”https://www.indexologyblog.com/author/shaun_wurzbach/”},{“display”:”Akash Jain”,”title”:”Director, Global Research & Design”,”image”:”/wp-content/authors/akash_jain-348.jpg”,”url”:”https://www.indexologyblog.com/author/akash_jain/”},{“display”:”Silvia Kitchener”,”title”:”Director, Global Equity Indices, Latin America”,”image”:”/wp-content/authors/silvia_kitchener-271.jpg”,”url”:”https://www.indexologyblog.com/author/silvia_kitchener/”},{“display”:”Ved Malla”,”title”:”Associate Director, Client Coverage”,”image”:”/wp-content/authors/ved_malla-347.jpg”,”url”:”https://www.indexologyblog.com/author/ved_malla/”},{“display”:”Jaime Merino”,”title”:”Director, Asset Owners Channel”,”image”:”/wp-content/authors/jaime_merino-384.jpg”,”url”:”https://www.indexologyblog.com/author/jaime_merino/”},{“display”:”Rupert Watts”,”title”:”Senior Director, Strategy Indices”,”image”:”/wp-content/authors/rupert_watts-366.jpg”,”url”:”https://www.indexologyblog.com/author/rupert_watts/”},{“display”:”Jason Giordano”,”title”:”Director, Fixed Income, Product Management”,”image”:”/wp-content/authors/jason_giordano-378.jpg”,”url”:”https://www.indexologyblog.com/author/jason_giordano/”},{“display”:”Qing Li”,”title”:”Director, Global Research & Design”,”image”:”/wp-content/authors/qing_li-190.jpg”,”url”:”https://www.indexologyblog.com/author/qing_li/”},{“display”:”Ben Leale-Green”,”title”:”Associate Director, Research & Design, ESG Indices”,”image”:”/wp-content/authors/ben_leale-green-342.jpg”,”url”:”https://www.indexologyblog.com/author/ben_leale-green/”},{“display”:”Priscilla Luk”,”title”:”Managing Director, Global Research & Design, APAC”,”image”:”/wp-content/authors/priscilla_luk-228.jpg”,”url”:”https://www.indexologyblog.com/author/priscilla_luk/”},{“display”:”Sharon Liebowitz”,”title”:”Head of Innovation”,”image”:”/wp-content/authors/sharon_liebowitz-423.jpg”,”url”:”https://www.indexologyblog.com/author/sharon_liebowitz/”},{“display”:”Liyu Zeng”,”title”:”Director, Global Research & Design”,”image”:”/wp-content/authors/liyu_zeng-252.png”,”url”:”https://www.indexologyblog.com/author/liyu_zeng/”},{“display”:”Brian Luke”,”title”:”Senior Director, Head of Fixed Income Indices – Americas”,”image”:”/wp-content/authors/brian.luke-344.png”,”url”:”https://www.indexologyblog.com/author/brian-luke/”},{“display”:”Andrew Innes”,”title”:”Head of EMEA, Global Research & Design”,”image”:”/wp-content/authors/andrew_innes-189.jpg”,”url”:”https://www.indexologyblog.com/author/andrew_innes/”},{“display”:”Barbara Velado”,”title”:”Senior Analyst, Research & Design, ESG Indices”,”image”:”/wp-content/authors/barbara_velado-413.jpg”,”url”:”https://www.indexologyblog.com/author/barbara_velado/”},{“display”:”Michael Mell”,”title”:”Senior Director, Custom Indices”,”image”:”/wp-content/authors/michael_mell-362.jpg”,”url”:”https://www.indexologyblog.com/author/michael_mell/”},{“display”:”Sherifa Issifu”,”title”:”Senior Analyst, U.S. Equity Indices”,”image”:”/wp-content/authors/sherifa_issifu-373.jpg”,”url”:”https://www.indexologyblog.com/author/sherifa_issifu/”},{“display”:”Izzy Wang”,”title”:”Analyst, Strategy Indices”,”image”:”/wp-content/authors/izzy.wang-326.jpg”,”url”:”https://www.indexologyblog.com/author/izzy-wang/”},{“display”:”Rachel Du”,”title”:”Senior Analyst, Global Research & Design”,”image”:”/wp-content/authors/rachel_du-365.jpg”,”url”:”https://www.indexologyblog.com/author/rachel_du/”},{“display”:”Benedek Vu00f6ru00f6s”,”title”:”Director, Index Investment Strategy”,”image”:”/wp-content/authors/benedek_voros-440.jpg”,”url”:”https://www.indexologyblog.com/author/benedek_voros/”},{“display”:”Jason Ye”,”title”:”Director, Strategy Indices”,”image”:”/wp-content/authors/Jason%20Ye-448.jpg”,”url”:”https://www.indexologyblog.com/author/jason-ye/”},{“display”:”Jaspreet Duhra”,”title”:”Managing Director, Global Head of ESG Indices”,”image”:”/wp-content/authors/jaspreet_duhra-454.jpg”,”url”:”https://www.indexologyblog.com/author/jaspreet_duhra/”},{“display”:”Daniel Perrone”,”title”:”Director and Head of Operations, ESG Indices”,”image”:”/wp-content/authors/daniel_perrone-387.jpg”,”url”:”https://www.indexologyblog.com/author/daniel_perrone/”},{“display”:”Ari Rajendra”,”title”:”Senior Director, Strategy & Volatility Indices”,”image”:”/wp-content/authors/Ari.Rajendra-400.jpg”,”url”:”https://www.indexologyblog.com/author/ari-rajendra/”},{“display”:”Cristopher Anguiano”,”title”:”Senior Analyst, U.S. Equity Indices”,”image”:”/wp-content/authors/cristopher_anguiano-421.jpg”,”url”:”https://www.indexologyblog.com/author/cristopher_anguiano/”},{“display”:”Sean Freer”,”title”:”Director, Global Equity Indices”,”image”:”/wp-content/authors/sean_freer-490.jpg”,”url”:”https://www.indexologyblog.com/author/sean_freer/”},{“display”:”Louis Bellucci”,”title”:”Senior Director, Index Governance”,”image”:”/wp-content/authors/louis_bellucci-377.jpg”,”url”:”https://www.indexologyblog.com/author/louis_bellucci/”},{“display”:”George Valantasis”,”title”:”Associate Director, Strategy Indices”,”image”:”/wp-content/authors/george-valantasis-453.jpg”,”url”:”https://www.indexologyblog.com/author/george-valantasis/”}]
Inspecting the Effectiveness of Defensive Technique Indices
-
Classes
Equities, Technique -
Tags
Craig Lazzara, defensive equities, Defensive indices, defensive methods, dispersion, Dividend Aristocrats, dividend growers, ETFs, issue indices, issue danger premia, mounted revenue, low volatility, passive investing, S&P 500 Components, S&P 500 High quality, Volatility Administration
What does historical past need to say concerning the effectiveness of issue indices as defensive instruments? S&P DJI’s Craig Lazzara explores protection past bonds and the way defensive elements affect danger/return in numerous market environments.
The posts on this weblog are opinions, not recommendation. Please learn our Disclaimers.
An Index Strategy to World Cup Success
Soccer fanatics throughout the globe are watching intently to see which of the 32 nations that certified for the FIFA World Cup finals in Qatar will increase the trophy in glory.
Each 4 years, the worldwide highlight scrutinizes every nation’s footballing prowess (or lack thereof). Past coaches, pundits and tacticians, the World Cup provides loads of fodder for social scientists, economists and even political theorists to research and try to determine tendencies or patterns which will contribute to World Cup success.
If match success had been all the way down to inhabitants measurement, China and India would have certainly gained the cup by now. If the economic system measurement or GDP per capita had been a significant metric, then the U.S., Luxembourg or Singapore would certainly have come near profitable the coveted cup by now. The nations topping the UN’s Human Improvement Index (Switzerland, Norway and Iceland) haven’t gained a World Cup both. In truth, quite a lot of these notable mentions not often qualify for the finals.
S&P Dow Jones Indices (S&P DJI) definitely doesn’t purport to have remoted the key ingredient for World Cup success, however we do know indices and are keenly following competing nations which can be included within the S&P International BMI (Broad Market Index) and S&P Frontier BMI.
S&P DJI Market Classifications
The S&P International BMI consists of 49 markets, of which 25 are categorised as developed and 24 as rising, whereas the S&P Frontier BMI consists of 31 extra markets. The S&P International BMI contains over 14,000 corporations and covers all publicly listed equities with float-adjusted market values above USD 100 million that meet minimal liquidity standards. The S&P Frontier BMI is designed to measure the efficiency of comparatively smaller and fewer liquid markets.
Of the 32 nations which have certified for the 2022 World Cup finals, 20 are included within the S&P International BMI, masking 87.7% of the index’s market capitalization; 15 of those are thought of developed, whereas the opposite 5 are rising. Seven different competing nations are represented throughout the S&P Frontier BMI, masking simply over a 3rd of the index’s market capitalization, whereas the remaining 5 qualifiers don’t presently meet frontier market standards.
Developed Markets Have Higher FIFA Rankings
Wanting on the common FIFA rating of every section, the developed cohort has the bottom at 15.8, adopted by the nations not categorised in S&P DJI’s world fairness index collection at 25.8. Regardless of having the top-ranked nation (Brazil), the rising cohort’s common rank is 28.2, which is greater than the frontier cohort at 27.1.
Developed Markets Overrepresented on the World Cup Finals
FIFA membership consists of over 200 nations and associations, and solely 25 of these are categorised as developed markets by S&P DJI. Nevertheless, these nations1 symbolize over 40% of the nations (15 of 32) that certified for the 2022 finals and over 60% of the groups that progressed to the spherical of 16.
Because the S&P International BMI launched in 1989, there have been eight World Cup finals, two have been gained by an rising market—Brazil—and the opposite six by nations categorised as developed markets—Germany, France, Italy and Spain.
Whereas Brazil is the favourite to be within the World Cup Last on Dec. 18, 2022, kind apart, evidently nations from the developed markets cohort can have the best probability of World Cup success. Whereas the frontier cohort has bucked the development outperforming rising.
Notable Outperformers and Underperformers
Given every nation’s stature within the S&P International BMI by composition weight and variety of corporations, Canada, Germany and Denmark can be seen as underperformers by way of world market stature and footballing prowess by not progressing past the group stage at this 12 months’s World Cup.
Whereas Argentina, Brazil and Croatia have outperformed their market stature, they’re extremely positioned of their FIFA rankings—so this isn’t surprising. Shocking outperformers can be Morocco, Ghana and Senegal primarily based on their restricted investable market stature.
S&P Dow Jones Indices Market Classification Methodology will be discovered right here: https://www.spglobal.com/spdji/en/paperwork/index-policies/methodology-country-classification.pdf.
1 The U.Okay. is assessed as one developed market however represented in multiples associations inside FIFA—England, Northern Eire, Gibraltar, Scotland and Wales.
The posts on this weblog are opinions, not recommendation. Please learn our Disclaimers.
How Indexing Works for Carbon Markets
-
Classes
Commodities, ESG -
Tags
various investments, carbon futures markets, carbon markets, commodities, compliance carbon markets, power transition, ESG, world voluntary carbon futures markets, indexing carbon markets, Jim Wiederhold, KraneShares, Luke Oliver, S&P Dow Jones Indices, S&P GSCI International Voluntary Carbon Liquidity Weighted, voluntary carbon markets
How are revolutionary indices monitoring compliance and voluntary carbon futures markets bringing higher transparency to the power transition? S&P DJI’s Jim Wiederhold and KraneShares’ Luke Oliver focus on how first-to-market benchmarks are democratizing entry to world carbon markets.
The posts on this weblog are opinions, not recommendation. Please learn our Disclaimers.
Exploring Lively vs. Passive in Latin America
-
Classes
Equities, Fastened Revenue -
Tags
lively administration, Lively vs. Passive, Brazil, Chile, Ericka Alcántara, indexing, Latin America, Latin American equities, Latin American Fastened Revenue, Latin American Funds, Mexico, passive investing, passive administration, S&P Brazil BMI, S&P Chile BMI, S&P Dow Jones Indices, S&P Indices vs. Lively, S&P/BMV IRT, SPIVA, SPIVA Latin America Scorecard, Tim Edwards
How do lively managers in Latin America stack as much as their benchmarks? Uncover the important thing takeaways from the most recent SPIVA Latin America Scorecard with S&P DJI’s Tim Edwards and Ericka Alcántara.
The posts on this weblog are opinions, not recommendation. Please learn our Disclaimers.
S&P ESG Excessive Yield Dividend Aristocrats Index – Including a Layer of Sustainability by way of ESG Screening
Excessive-dividend-yielding shares have been prevalent in 2022, as rising rates of interest have put downward stress on lengthy length property. On the identical time, market contributors are more and more searching for to align investments with their private and societal values. The S&P ESG Excessive Yield Dividend Aristocrats® Index could also be a method that checks each of those containers. Launched in March 2021, this index strives to attain low monitoring error and comparable dividend yield to the S&P Excessive Yield Dividend Aristocrats Index whereas incorporating significant ESG enchancment.
Combining Dividend Aristocrats and ESG Methodology
The S&P ESG Excessive Yield Dividend Aristocrats Index combines the S&P Dividend Aristocrats methodology with a sustainability overlay. To qualify for the index, an organization should first have persistently elevated dividends yearly for at the very least 20 years. This preliminary filter tilts the index towards deciding on higher-quality corporations, for the reason that capability to persistently develop dividends over an extended time frame will be a sign of monetary energy, self-discipline and sturdy incomes energy.
Subsequent, a number of ESG screens are utilized. The index excludes corporations within the lowest quartile of S&P DJI ESG Scores. Further ESG exclusion evaluations are carried out quarterly primarily based on enterprise actions, in addition to United Nations International Compact (UNGC) breaches. These ESG screens serve to boost the already stringent {qualifications} of the Dividend Aristocrats methodology.
Efficiency
Since January 2011, the S&P ESG Excessive Yield Dividend Aristocrats Index has generated a 12.92% annualized return versus 11.87% for the S&P 1500TM, whereas exhibiting much less volatility.
Just lately, the outperformance of the S&P ESG Excessive Yield Dividend Aristocrats Index versus the S&P 1500 has been much more pronounced. 12 months-to-date, the S&P ESG Excessive Yield Dividend Aristocrats Index has outperformed the benchmark by 15.25%. One purpose for that is that high-yielding indices, primarily by their decrease durations, supplied higher safety towards quickly rising rates of interest in comparison with the benchmark.
Comparability of S&P DJI ESG Scores and Dividend Yields
Exhibit 3 exhibits that the S&P ESG Excessive Yield Dividend Aristocrats Index supplied notable S&P DJI ESG Rating enchancment over the S&P Excessive Yield Dividend Aristocrats Index. The S&P DJI ESG Rating improved by 11 factors per 12 months on common, revealing an annual improve of over 20%.
The S&P ESG Excessive Yield Dividend Aristocrats Index and S&P Excessive Yield Dividend Aristocrats Index have had comparable yields traditionally, and each have held a major yield benefit over the S&P 1500 (see Exhibit 4). Over the interval examined, the typical annual dividend yields for the S&P ESG Excessive Yield Dividend Aristocrats Index, S&P Excessive Yield Dividend Aristocrats Index and S&P 1500 had been 2.73%, 2.88% and 1.84%, respectively.
Exhibit 5 exhibits the typical year-over-year annual proportion dividend development charge for present S&P ESG Excessive Yield Dividend Aristocrats Index constituents. The common year-over-year dividend development charge over the previous 20 years was 11.26%, far surpassing the typical year-over-year U.S. CPI charge of two.35% over the identical interval.
Conclusion
For market contributors who’re in search of high-quality corporations that align with their private values, in addition to a historical past of steady and engaging dividend funds, the S&P ESG Excessive Yield Dividend Aristocrats Index could also be an choice to contemplate.
The posts on this weblog are opinions, not recommendation. Please learn our Disclaimers.