TITLE

The Role of the S&P 500 Index Constituents in Tracking the U.S. Equity Market

AUTHOR(S)
Asem, Ebenezer; Alam, Shamsul
PUB. DATE
December 2012
SOURCE
International Journal of Economics & Finance;Dec2012, Vol. 4 Issue 12, p15
SOURCE TYPE
Academic Journal
DOC. TYPE
Article
ABSTRACT
We investigate how the S&P committee balances the Index's goals of representing the U.S. equity market as well as capturing the performance of the equity market through its addition/deletion decisions. Our results show that the Index represents the US equity market very well by maintaining large stocks. However, these large stocks underperform the Index by 0.24% per month. The index committee makes up the lower performance of these stocks by adding high-performance stocks when deletions occur. The deletion/addition events are therefore crucial in both representing the equity market and tracking it performance.
ACCESSION #
84401539

 

Related Articles

  • YEAR OF THE YO-YO. Surowiecki, James // New Yorker;1/16/2012, Vol. 87 Issue 44, p23 

    In this article the author discusses the volatility of the U.S. financial market in 2011. He discusses fluctuations with the Dow Jones Industrial Average and Standard & Poor's (S&P) 500 indexes for the stock market, examines how economic instability in the U.S. has impacted the work of...

  • U.S. Stock Funds Up For A Fifth Straight Week. DOUG ROGERS // Investors Business Daily;11/21/2014, p00 

    U.S. stock

  • Accuracy And Cost Of U.S. Financial Data. Flanegin, Frank; Racic, Stanko; Rudd, Denis // Journal of Applied Business Research;Nov/Dec2009, Vol. 25 Issue 6, p47 

    Data from The Center for Research in Security Prices (CRSP) has been widely recognized and accepted as the premier source of research quality US. stock market data for more than 40 years. As a result of advances in information technology, other sources of US. stock market data became available...

  • Market Wisdom 101: The Real Key is Growth. Tankersley, Jim // National Journal;10/1/2011, p4 

    The article presents an update on the status of the stock market of the U.S. It is highlighted that in August 2011, the S&P 500 index has bounced between daily 2.5 percent gains and 2.5 percent losses with the steady frequency of a sine wave. Details on the causes why the stocks are down in the...

  • Looking back to find value.  // Dow Theory Forecasts;6/6/2011, Vol. 67 Issue 23, p1 

    The article offers forecasts for the stock market in the U.S. for 2011 and 2012. It expects a 17% growth in per-share-profit for the Standard & Poor's 500 Index in 2011 and a 13% increase in 2012. It also examines the performance of the different stocks of several companies in the country...

  • Income Bellwethers. Peters, Josh // Morningstar DividendInvestor;Apr2011, Vol. 7 Issue 3, p12 

    The article focuses on the dividend performance of the members of Income Bellwethers, a coverage list of 100 large and higher-yielding stocks in the U.S. exchanges. It states that the stock market fade in February and March 2011 but the average stocks lose only 1.0% of its value and the Standard...

  • Fear Factor. Chapman, Peter // Traders Magazine;Mar2012, Vol. 25 Issue 334, p7 

    The article presents an outlook for the U.S. stock market as of March 2012. Topics discussed include the move of retail investors and pension plans to allocate funds away from stocks, retail and institutional investors' demand for a return on investment, and loss posted by the Standard & Poor's...

  • Pile Of Distribution Days Nailed The Market Top In Latter 2008. VINCENT MAO // Investors Business Daily;7/15/2014, pB03 

    Contrary to popular belief, calling market tops isn't a fool's game. Given the right tools, you can tell when the market's uptrend will likely end.

  • Midcap Fund Seeks New Leaders. PAUL KATZEFF // Investors Business Daily;3/11/2015, pA07 

    The article reports on the stock increase of the Mid Cap Growth mutual fund of American financial services company J.P. Morgan Chase & Co. tracked by stock index Morningstar Inc. and S&P 500 Index from year to March 10, 2015. Manager Tim Parton states that the stock fund has not changed its...

Share

Read the Article

Courtesy of THE LIBRARY OF VIRGINIA

Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics