Free «Portfolio» Essay Sample
Table of Contents
Briefly describe the S&P 500 Index and why is it one of the most commonly followed indices?
The S&P 500 Index with a benchmark is now valued at over US$ 5.58 trillion with approximated index assets of US$ 1.31 trillion of this total was first established in 1957. It also captures 75 % US equities coverage. It is an index of America’s largest 500 companies. It has great influence on the US market fluctuations. S&P 500 Index is a value weighted index and hence each company is purchased according to market capitalization.
Evaluate the performance of S&P 500 Index over the last 20 years (Calculate the annual rates of return, average annual rate of return and standard deviation over the last 20 years)
In the last 20 years, the S&P 500 Index has experienced a low volatility index which led to generation of higher average returns as well as returns of lower variability compared to broader market index. This can be summarized by the graph below (Ploutos, N.p):
List the sectors of S&P 500 Index
The S&P 500 Index sectors and their market share in percentage (%) as at April 12th, 2013 include:
Energy - 10.64
Cons Disc - 11.68
Cons Staples - 11.08
Industrials - 10.00
Financials - 15.96
Materials - 3.34
Health Care - 12.88
Info Tech - 17.68
Telecom Svc - 3.07
Utilities - 3.57
Find the historical data on S&P 500 Index Sectors over the last 10 years and provide the source
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Technology
39.05
|
Energy 33.40
|
Energy 40.23 |
Utilities 20.58
|
Energy 36.34
|
Consumer Staples -14.97
|
Technology 50.94
|
Industrials 27.82
|
Utilities 19.51
|
Financials 28.51
|
Materials 37.50
|
Utilities 23.79 |
Utilities 16.52
|
Financials 18.83
|
Materials 21.98
|
Healthcare -23.15 |
Materials 48.48
|
Consumer Discretionary 27.46
|
Consumer Staples 14.00
|
Consumer Discretionary 23.58
|
Consumer Discretionary 36.98
|
Industrials 17.42
|
Equal Sector 8.07
|
Consumer Discretionary 18.43
|
Utilities 19.10
|
Utilities -29.08
|
Consumer Discretionary 41.16
|
Energy 21.78
|
Healthcare 12.42
|
Healthcare 17.53
|
Industrials 32.50
|
Equal Sector 14.12
|
Healthcare 6.44
|
Energy 18.29
|
Technology 15.19
|
Consumer Discretionary -33.41
|
Equal Sector 27.79
|
Materials 20.55
|
Consumer Discretionary 5.95
|
Technology 15.46
|
Financials 30.53
|
Materials 13.24
|
Financials 6.21
|
Materials 18.26
|
Consumer Staples 14.46
|
Equal Sector -35.16
|
Industrials 22.63 |
Equal Sector 16.11
|
Equal Sector 3.30 |
Industrials 14.86
|
Equal Sector 28.17
|
Consumer Discretionary 12.89
|
Materials 4.14
|
Equal Sector 15.99
|
Industrials 13.19
|
Energy -38.79
|
Energy 21.58
|
Consumer Staples 13.79
|
Energy 2.98
|
Equal Sector 14.78
|
Energy 26.36
|
Financials 10.59
|
Consumer Staples 2.84
|
Consumer Staples 14.58
|
Equal Sector 9.65
|
Industrials -38.87
|
Healthcare 19.82
|
Financials 11.91
|
Technology 2.67
|
Materials 14.74 |
Utilities 25.82
|
Consumer Staples 7.80
|
Industrials 2.78
|
Industrials 13.59
|
Healthcare 7.09
|
Technology -41.38
|
Financials 17.50
|
Technology 11.39
|
Industrials -1.02
|
Consumer Staples 10.72
|
Healthcare 14.76
|
Technology 5.21
|
Technology -0.12
|
Technology 12.10
|
Consumer Discretionary -13.38
|
Materials -43.99
|
Consumer Staples 14.22
|
Utilities 5.30
|
Materials -10.97
|
Energy 5.21
|
Consumer Staples 10.96
|
Healthcare 1.45
|
Consumer Discretionary -6.52
|
Health care 7.53 |
Financials -18.79
|
Financials -55.19
|
Utilities 11.41
|
Healthcare 3.30
|
Financials -17.16
|
Utilities 1.10 |
Sector Returns by Year 2003-2012
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