Daily Index Insights offers a concise two-minute read on the latest news and trends in index markets. This resource includes performance data from S&P Dow Jones Indices across equities, fixed income, multi-asset, commodities, and factors. Our daily insights are designed to provide you with a comprehensive understanding of market movements, empowering you to make informed decisions based on the most current indices data and analysis.
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“Two points that are very important points to remember and ask: Is it real and does it work?”
Edward T. Hall (May 16, 1914 – July 20, 2009)
Happy birthday to the man who taught us that if clothes don’t make the man, they make the legend. Born into a family of musicians 106 years ago today, musical prodigy Wladzui Valentino Liberace added flair, personality and – true to his Italian heritage – pizazz to playing “classical music with the boring parts left out”. Known for his lifestyle of flamboyant excesses on and off stage, he was also the highest-paid entertainer in the world at the height of his fame. Here is your daily dashboard.
- Yesterday’s lower than expected producer prices inflation for April signaled moderating inflationary pressures in the U.S. economy, leading to a drop in yields across the curve and the outperformance of yield-sensitive equity segments including Utilities, up 2.2%, and Real Estate, up 1.8%; the S&P 500® gained 0.4%.
- In the beginning of May, we welcomed two new additions to the S&P DJI index family, the S&P 500® 1-Day Realized Dispersion Index and the S&P 500® 30-Day Realized Dispersion Index. The two indices measure the historical dispersion of the S&P 500 total return index using the 1-day and 30-day returns and adjusted closing weights, respectively, of each constituent in the S&P 500, along with the return of the S&P 500 itself for the corresponding time horizon. By providing a transparent measure of realized dispersion, these indices may help investors better understand the underlying dynamics of risk and return in the U.S. equity market. For an introduction to the indices, check out Anna Mittra’s informative blog!
- Two new Year-End 2024 Persistence Scorecards also hit the tapes this week. The Europe Persistence Scorecard highlights that over two discrete three-year period, among active equity funds, a relatively high proportion of funds moved from the top quartile of performance in the first three-year period to the lowest quartile in the subsequent three-year period, while those funds that survived from the lowest initial quartile of performance, a degree of mean reversion in performance was clearly visible. How does the picture look for fixed income funds? To find out, check out the Scorecard here!
- The Canada Persistence Scorecard found that in three of the seven fund categories examined, the percentage of Canada-domiciled actively managed equity funds staying in the top half over two consecutive five-year periods surpassed what would be expected from a random distribution. However, looking at the 169 funds across the seven categories that placed in the top quartile for the 12-month period ending December 2020, only 2 managed to remain in the top quartile for the next four years.
