S&P Introducing New Versions of S&P 500

S&P Indices is launching two indexes designed to provide market participants with unique measuring tools for specific stock characteristics within the S&P 500.

The S&P 500 Low Volatility Index measures the performance of the 100 least volatile stocks in the S&P 500. The Index is designed to serve as a benchmark for low volatility or low variance strategies in the U.S. stock market, the company said. Constituents are weighted relative to the inverse of their corresponding volatility, with the least volatile stocks receiving the highest weights.  

The S&P 500 High Beta Index will measure the performance of the 100 constituents of the S&P 500 that are the most sensitive to changes in market returns. It is designed to serve as a benchmark for investors with a bullish strategic or tactical view of the U.S. stock market. Constituents are weighted in proportion to their market sensitivity, or beta, with the highest-beta stocks receiving the highest weights.  

Want the latest retirement plan adviser news and insights? Sign up for PLANADVISER newsletters.

Both the S&P 500 Low Volatility Index and the S&P 500 High Beta Index will serve as the basis for future PowerShares ETFs.  

For more information, visit http://www.standardandpoors.com/indices.

Report Examines How Financial Advisers Use ETFs

Strategic Insight, an Asset International company, has released a report analyzing how exchange-traded funds (ETFs) are being adopted by advisers.

 

The report, “How Financial Advisors Use ETFs,” examines the following questions:

  • What are national broker/dealer-affiliated advisers doing and what does it mean?
  • How quickly are ETFs penetrating national broker/dealer (NBD) wraps?
  • Are financial advisers selling active mutual funds in order to switch those assets into ETFs?
  • Among NBD advisers, which kinds of mutual funds have tended to attract heavy ETF users?

The study provides analysis of ETFs’ use in NBD wraps, and especially in “Rep-as-PM” (portfolio manager) programs, the fastest-growing and most ETF-centric types of wraps.

For more stories like this, sign up for the PLANADVISERdash daily newsletter.

The report used a study of 1,746 financial advisers in these programs managing a combined $12B in ETF assets – using their actual assets, flows and sales data.

The report can be purchased here.

«