Whether as part of strategic core equity allocation or as a complement to or replacement of a more traditional buy-and-hold stock or bond allocation, the managed risk 2.0 approach offers a useful tool to help market participants as they seek to achieve long-term return goals while effectively managing risk.
Not only does the Dow Jones U.S. Dividend 100 Index seek to track stocks with consistent dividend payouts, but it also applies quality assurance for the sustainability of yields.
The low volatility anomaly.
Natural resources as an asset class have appealed to investors for various reasons, the predominant of which are portfolio diversification and inflation protection.
Quality is often considered an alternative to growth investing, focusing on companies that exhibit signs of above-average growth, even if those companies may be more expensive than some of their counterparts.
As an investable concept, momentum is straightforward—purchase (avoid) stocks that have performed relatively well (poorly) recently.
Tracking the Boomers... and Beyond
Alternatively weighted—or smart beta—strategies are among the fastest-growing and hottest investment topics. They range from the basic concepts of equal-weighted indices to dividend-yield-weighted strategies and the more exciting multi-factor indices we are seeing today.
Holding a combination of smart beta strategies in a blended portfolio could potentially provide a powerful source of diversification and more stable excess return outcomes.
The S&P GIVI® (Global Intrinsic Value Index) is a rules-based index series that is designed to deliver both low volatility and performance, weighted by intrinsic value rather than by traditional market capitalization. The indices are designed to provide those factor tilts while maintaining benchmark-like characteristics (low overall tracking error and similar region, country, and sector bets as the benchmark), along with high capacity.
Read more about the S&P Leverage and Inverse Indices and how they can be a useful benchmark for leverage and inverse products.
The S&P GIVI Indices are constructed to provide exposure to the low beta and value factors while maintaining benchmark like characteristics without optimization.
Launched in March 2013, the real-time S&P/ASX 200 VIX® is designed to measure the expected 30-day volatility in the Australian benchmark equity index, the S&P/ASX 200.
The S&P Managed Risk Indices provide a way for investors to gain exposure to a particular equity market while controlling the level of risk using a two-step risk management overlay.
The power of gold has been demonstrated repeatedly in equity market crises going back to the Great Depression. At times of extreme pessimism, gold has tended to be buoyant and equities depressed; at times of extreme confidence, gold has tended to be depressed and equities buoyant.
The S&P 500 Low Volatility Target Beta Index seeks to measure the performance of low-volatility stocks within the S&P 500, while maintaining the S&P 500’s level of overall market risk.
Hedging aims to ensure that the investor will receive USD 100,000 at the end of her holding period, regardless of exchange rate fluctuations. However, it could result in forfeiting gains.
The percentage of dividends as a part of personal income has steadily increased over time, making dividends an important source of income.
S&P Risk Control 2 Indices represent the next generation of risk control indices. These indices replace the cash portion of the investment that is seen in the standard risk control strategy with a liquid bond index.
In the world of textbook corporate finance, there are three options that companies can undertake to dispense excess cash. Firms can: (1) invest in capital expenditures, (2) make an acquisition, or (3) return cash to shareholders by increasing dividends or buying back stock, or they can do any combination of the three.
The concept of December 2013 dispersion provides a rigorous way of measuring the gap between the “best” and “worst” performers in a market over a defined period of time.
The S&P BMI Emerging Market Low Volatility Index has outperformed its underlying benchmark and the MSCI Emerging Market Index over the past 10 years, while reducing annualized risk.
Market volatility can be a powerful enemy of long-term performance. Traditional indexing generally allows investors to diversify individual company risk and still enjoy exposure to 100% of the market return.
Dividends have been in existence since the 16th century, when sailing ship captains in Holland and Britain began selling the payoffs of financially motivated voyages to investors.
The S&P 500 Low Volatility Index addresses the need for an easily comprehendible and transparent benchmark for managed volatility equity strategies.