While FAANGs have long basked in the investment spotlight, the digital transformation accelerated by the coronavirus crisis has dramatically amplified the market influence of these tech giants in the US. In fact, the phenomenal run of FAANGs—Facebook, Amazon, Apple, Netflix and Google (i.e., Alphabet Inc.)—has pushed the US market into the black year to date. […]
Melissa Brown discusses the STOXX® Europe 600 Paris-Aligned Benchmark Index, and the strategy driving a higher return and lower volatility than its benchmark. Learn more in our white paper, The STOXX Europe 600 Paris-Aligned Benchmark: A Better Path to Success?
The STOXX® Europe 600 Paris-Aligned Benchmark Index was launched in June 2020. In backtested data since March 2018, we find that the strategy has offered a higher return and lower volatility versus its benchmark. This paper drills down into some of the factors driving those results.
Equity markets have mostly recouped the losses of the downturn that started in February of this year, but at different rates. Notably, the broad market Russell 3000 index ended the first half down just 3.5%, whereas the small-cap Russell 2000—unable to benefit from the strength in such names as Amazon, Apple, Microsoft, Tesla and others […]
The EURO STOXX 50® ESG Index was launched last year as an environmental, social and governance (ESG) version of the EURO STOXX 50® Index, the blue-chip Eurozone benchmark. The ESG index incorporates both standard exclusions and integrates companies’ ESG scores into stock selection. In other words, it excludes companies engaged in controversial activities and those with low ESG scores, and […]
Apple. Amazon. Microsoft. Alphabet. It’s no secret that tech stocks are driving markets higher and have been important contributors to portfolio returns. But what about their impact on value-based strategies? Not surprisingly, returns of both Value (defined as book/price) and Earnings Yield in the US model continued their run of underperformance into 2020—and it’s only […]
Investors flocked to US Utilities, a defensive sector that could help immunize portfolios against volatility caused by the growing coronavirus outbreak. Stocks around the globe fell last week, after WHO declared the coronavirus epidemic an international health emergency. Businesses were disrupted in China and internationally, amid broad efforts to contain the virus, with entire cities […]