ETFdb Logo
ETFdb Logo
  • ETF Database
  • Channels
    • Active ETF
    • Alternatives
    • Beyond Basic Beta
    • China Insights
    • Climate Insights
    • Commodities
    • Core Strategies
    • Crypto
    • Disruptive Technology
    • Dividend
    • Dual Impact
    • Emerging Markets
    • Energy Infrastructure
    • ESG
    • ETF Building Blocks
    • ETF Education
    • ETF Strategist
    • Fixed Income
    • Free Cash Flow
    • Future ETFs
    • Global Diversification
    • Gold & Silver Investing
    • Innovative ETFs
    • Institutional Income Strategies
    • Leveraged & Inverse
    • Managed Futures
    • Market Insights
    • Megatrends
    • Modern Alpha
    • Multi-Asset
    • Night Effect
    • Portfolio Strategies
    • Retirement Income
    • Richard Bernstein Advisors
    • Tax Efficient Income
    • Thematic Investing
    • Volatility Resource
  • Tools
    • ETF Screener
    • ETF Country Exposure Tool
    • ETF Sector Tracker Tool
    • ETF Database Categories
    • Head-To-Head ETF Comparison Tool
    • ETF Stock Exposure Tool
    • ETF Issuer Fund Flows
    • Indexes
    • Mutual Fund To ETF Converter
    • ETF Data for Journalists
    • ETF Nerds
  • Research
    • First Bitcoin ETF
    • ETF Education
    • Equity Investing
    • Dividend ETFs
    • Leveraged ETFs
    • Inverse ETFs
    • Index Education
    • Index Insights
    • Top ETF Sectors
    • Top ETF Issuers
    • Top ETF Industries
  • Webcasts
  • Themes
    • AI ETFs
    • Blockchain ETFs
    • See all Thematic Investing ETF themes
    • ESG Investing
    • Marijuana ETFs
  • Multimedia
    • ETF 360 Video Series
    • ETF Trends on Videos
    • ETF Trends on Podcasts
    • ETF Prime Podcast
  • Company
    • About Us
    • Swag Store
  • PRO
    • Pro Content
    • Pro Tools
    • Advanced
    • FAQ
    • Pricing
    • Free Sign Up
    • Login
  1. Portfolio Strategies Channel
  2. S&P 500 Returns Top 50% Since Global Pandemic Declared
Portfolio Strategies Channel
Share

S&P 500 Returns Top 50% Since Global Pandemic Declared

Elle CarusoMar 11, 2022
2022-03-11

Today, March 11, marks the two-year anniversary of the declared state of emergency for the COVID-19 pandemic, a seismic event that has had global effects, impacting every aspect of peoples’ lives.

The last two years have been marred by significant turmoil. There have been over six million deaths due to COVID-19, according to Johns Hopkins University, widespread and long-lasting supply chain disruptions, pivotal elections leading to policy change, red-hot inflation nearly reaching double digits, and a war raging between Russia and Ukraine, causing human tragedy and global economic uncertainty.

These profound events have shaken up markets, leading to nauseating levels of turbulence and investor insecurity; however, looking at the last two years may be able to ease panic for longer-term investors.

While the S&P 500 Index is down 10.63% year-to-date, and the S&P 500 Equal Weight Index is down 7.42% year-to-date, cushioned by its heavier exposure to energy, which was the top-performing sector in the index in 2021 and this year to date, the market’s ability to recover and bounce back despite significant disruptions has been promising.

From March 1, 2020, through March 1, 2022, the S&P 500 and the S&P 500 Equal Weight Indexes have returned 50.45% and 52.38%, respectively, according to data from YCharts. 

SP 500 Chart Graph Image
SP 500 Equal Weight Chart Graph Image

Content continues below advertisement

Meanwhile, the two-year Treasury rate was at 1.31% on March 1, 2022, creeping up slowly alongside rising interest rates.

Some inflationary pressures have continued to worsen, with the CPI reaching a four-decade record of 7.9% in February year-over-year, which has not yet taken into account the surge in energy prices as well as other commodities due to the Russia-Ukraine crisis, spurring expectations of significant interest rate hikes.

However, contrary to popular belief, U.S. stocks generally did better during Fed tightening cycles than during Fed easing cycles, according to Talley Léger, senior investment strategist at Invesco

Fed tightening occurred in the second half of U.S. business cycles 67% of the time, and Fed easing overlapped with U.S. economic recessions 67% of the time, according to Léger.

More downside and volatility is expected as Russia’s invasion of Ukraine came as an enormous surprise to markets, as reflected in the stock market sell-off as well as some of the speculative activity in commodity prices; however, analysts predict that markets will start to recover as the global economy adjusts expectations and digests such a dramatic departure from conventional expectations.

Thus, for investors with a longer-term time horizon, Kristina Hooper, chief global market strategist at Invesco, suggests that now is not a time to abandon stocks. Rather, Hooper believes that this is a time to be well-diversified across and within asset classes, including alternatives such as commodities.

Strong offerings to consider in the current economic climate are the Invesco S&P 500 Equal Weight ETF (RSP A-) and the Invesco ESG S&P 500 Equal Weight ETF (RSPE ).

Opting for an equal-weight index, as opposed to a market cap-weighted approach, can provide diversification benefits and reduce concentration risk by weighting each constituent company equally so that a small group of companies does not have an outsized impact on the index.

For more news, information, and strategy, visit our Portfolio Strategies Channel.

Loading Articles...
Help & Info
  • Contact Us
Tools
  • ETF Screener
  • ETF Analyzer
  • Mutual Fund to ETF Converter
  • Head-To-Head ETF Comparison
  • ETF Country Exposure Tool
  • ETF Stock Exposure Tool
  • ETF Performance Visualizer
  • ETF Database Model Portfolios
  • ETF Database Realtime Ratings
  • ETF Database Pro
More Tools
  • ETF Launch Center
  • Financial Advisor & RIA Center
  • ETF Database RSS Feed
Explore ETFs
  • ETF News
  • ETF Picks of the Month
  • ETF Category Reports
  • Premium Articles
  • Alphabetical Listing of ETFs
  • Best ETFs
  • Browse ETFs by ETF Database Category
  • Browse ETFs by Index
  • Browse ETFs by Issuer
  • Compare ETFs
Legal
  • Terms of Use and Privacy Policy
  • © 2023 VettaFi LLC. All rights reserved.
Follow ETF Database
Follow ETF Database

Advertisement

Is Your Portfolio Positioned With Enough Global Exposure?

ETF Education Channel

How to Allocate Commodities in Portfolios

Tom LydonApr 26, 2022
2022-04-26

A long-running debate in asset allocation circles is how much of a portfolio an investor should...

Core Strategies Channel

Why ETFs Experience Limit Up/Down Protections

Karrie GordonMay 13, 2022
2022-05-13

In a digital age where information moves in milliseconds and millions of participants can transact...

}
X