By Mark Barnes, managing director, head of US research
Recent market turbulence has awakened memories of the painful side of stock volatility. It has also revived interest in defensive strategies that can provide long-term downside protection without sacrificing upside participation. But not all defensive strategies are created alike—they have distinct objectives and have produced very different return patterns over time. The December meltdown and subsequent snapback offer a live test case of this point.
Although growth has outperformed value over the last several years, heightened volatility in the US equity market and a fourth quarter correction has left more than a few people wondering whether value is finally going to have its day in the sun.
Following the fourth quarter downturn, depressed valuations and sentiment set the stage for a broad risk-asset rally. The Fed’s more dovish stance, better-than-expected US earnings guidance and easing in US-China trade tensions were among catalysts which brought relief to a nervous market. Join Philip Lawlor, managing director of Global Market Research at FTSE Russell, to hear how markets have performed in January during this period of renewed risk appetite.
US small-cap stocks with a track record of strong dividend growth had higher returns and less volatility versus the broad universe of US small-caps in 2018, in line with a similar trend demonstrated over the last decade. And, notably, this outperformance accelerated in fourth quarter during a particularly volatile period for US equities in general and US small-caps in particular.
FTSE Russell, the global index, data and analytics provider, announces that Dutch pension fund Pensioenfonds Detailhandel has selected a custom FTSE Russell ESG benchmark as the basis of its new €5.8bn developed market passive equity fund managed by BlackRock.
New indicative index designed to test and evaluate a benchmark for Digital Assets Market
Will help increase awareness and transparency of Digital Assets Market
VWAP pricing available on 100 most actively traded digital assets. Only vetted digital exchanges used and pricing quality screens applied
Index produced in association with DAR Data Services (DAR)
FTSE Russell, the global in...
You are now leaving www.ftserussell.com to access a third party website. The link to the third party website has been provided for information purposes only and inclusion of this link does not imply any endorsement or approval from FTSE Russell. FTSE Russell shall not be responsible for the accuracy, lawfulness or content of any third party website or of subsequent links and does not make any representation whatsoever about the content of any third party website. FTSE Russell does not accept any liability, of any kind, to any person arising as a result of any loss or damage or indirectly from the use of any content on such third party website or subsequent links.