Global Corporate Investment Grade
Our investment-grade bond indices are designed to track the performance of higher-quality debt. The investment-grade rating is assigned by a Nationally Recognized Statistical Rating Organization to securities with a relatively low risk of default.
All information for an index prior to its Launch Date is hypothetical back-tested, not actual performance, based on the index methodology in effect on the Launch Date. Back-tested performance reflects application of an index methodology and selection of index constituents with the benefit of hindsight and knowledge of factors that may have positively affected its performance, cannot account for all financial risk that may affect results and may be considered to reflect survivor/look ahead bias. Actual returns may differ significantly from, and be lower than, back-tested returns. Past performance is not an indication or guarantee of future results. This back-tested data may have been created using a Backward Data Assumption. For more information on Backward Data Assumption and back-testing in general, please see the Performance Disclosure.
What Is Standard & Poor’s
Standard & Poor’s is a company well known around the world as a creator of financial market indiceswidely used as investment benchmarksa data source, and an issuer of for companies and debt obligations. It’s perhaps best-known for the popular and often-cited S& P 500 Index. The company’s roots date back to the 1860s. Since 2016, its official corporate name has been S& P Global.
S& p 500 Investment Grade Corporate Bond Index
The S& P 500® Investment Grade Corporate Bond Index, a subindex of the S& P 500 Bond Index, seeks to measure the performance of U.S. corporate debt issued by constituents in the S& P 500 with an investment-grade rating. The S& P 500 Bond Index is designed to be a corporate-bond counterpart to the S& P 500, which is widely regarded as the best single gauge of large-cap U.S. equities.
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S& p 500 Index Futures
The first S& P 500 futures contracts were introduced by the Chicago Mercantile Exchange in 1982, and carried a notional value of $250 times the value of the S& P 500. The CME added the E-mini contractvalued at $50 times the S& P 500in 1997 to allow for smaller investments by a wider range of investors. And the even smaller micro E-mini, with a multiplier of just $5, was introduced in 2019.
The “E” in E-mini stands for electronic, a reflection of the fact that when E-minis were launched in 1997 they traded exclusively on CME Globex, CME’s electronic trading system, rather than in open outcry pits like other futures contracts. Many traders favored the E-mini over the standard contract not only for its smaller investment size but also for its liquidity. Consequently, CME delisted the standard contract in September 2021.
As with all futures, investors are only required to front a fraction of the contract value to take a position. This represents the margin on the futures contract. These margins are not the same as margins for stock trading. Futures margins show “skin in the game” that must be offset or settled.
Is Bbb Investment Grade
Yes, BBB does indicate investment grade. It is the lowest S& P rating to qualify as investment grade. It means a bond or an issuer “exhibits adequate protection parameters. However, adverse economic conditions or changing circumstances are more likely to weaken the obligor’s capacity to meet its financial commitments on the obligation,” as S& P puts it.
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S& p Us High Yield Corporate Bond Index
The S& P U.S. High Yield Corporate Bond Index is designed to track the performance of U.S. dollar-denominated, high-yield corporate bonds issued by companies whose country of risk use official G-10 currencies, excluding those countries that are members of the United Nations Eastern European Group . Qualifying securities must have a below-investment-grade rating and maturities of one or more months.
Example Of Standard & Poor’s Ratings
Standard & Poor’s Global Ratings division ranks debt instruments, like bonds, and the companies that issue them, in terms of creditworthinessdefined as the likelihood of default or inability to pay debts in a timely manner. Similar to academic grades, each rating consists of a letter on a scale of A to D, sometimes augmented with a plus or minus sign or a number. The higher the grade, the lower the risk .
A rating of BBB and above is called “investment grade”the safest sort of investment. Ratings below that are considered “speculative”a greater degree of risk.
The chart below displays Standard & Poor’s rating system for short-term debtbills, loans, and other obligations with a maturity of one year or less. These are the sort of instruments that money market funds and money market accounts often invest in.
| S& P Ratings Scale for Short-Term Debt |
|---|
| Letter Rating |
| In default |
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What Companies Are In The S& p 500
The S& P 500 consists of the 500 largest publicly-traded companies in the U.S. Many are highly familiar names: Microsoft, Apple, Exxon Mobile, Bank of America, Visa, and Coca-Cola.
To qualify for the S& P 500 Index, a company must have at least 10% of its shares outstanding in the public market and have a market capitalization of at least $13.1 billion.
What Does Standard And Poor’s Mean
Standard & Poor’s is a company, a leading index provider, and data source of independent credit ratings. The name comes from the 1941 merger of two financial data publications. Henry Varnum Poor’s publication on railroad prices , and The Standard Statistics Bureau, which was founded in 1906. Sometimes a reference to “Standard & Poor’s” can also mean the company’s most famous index: the S& P 500, which tracks the performance of the 500 largest public companies in the U.S.
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BetaPro ETFs use a corporate class structure and are designed to provide market-savvy investors with leveraged, inverse and inverse leveraged exposure to various indices or commodities on a daily basis.
Calendar Year Performance *
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Horizons S& P 500® Index ETF |
20.11 | ||
| S& P 500® Index | 20.70 | 27.51 | -12.41 |
The Inception Date shown is the inception date of the predecessor ETF of the same name which was structured as a trust. On November 27, 2019, after receiving unitholder approval, the predecessor ETF merged into a class of shares of a corporate fund structure. In accordance with exemptive relief, the data of the ETF presented here includes the historical data of the predecessor ETF in order to provide full disclosure of the ETFâs data.
Distribution data is not currently available.
| Information Technology |
| Security Name | |
|---|---|
| Berkshire Hathaway Inc Cl B | 1.73% |
Prices delayed by 15 minutes.
Last Trade: January 17, 2023 , 04:00 AM
Benchmark
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Ishares Iboxx $ Investment Grade Corporate Bond Etf
- NAV as of Jan 13, 2023$110.0752 WK: 99.01 – 130.09
- 1 Day NAV Change as of Jan 13, 2023-0.40
- NAV Total Return as of Jan 12, 2023YTD: 4.78%
- Fees as stated in the prospectus Expense Ratio: 0.14%
1. Exposure to a broad range of U.S. investment grade corporate bonds
2. Access to 1000+ high quality corporate bonds in a single fund
3. Use to seek stability and pursue income
Standard & Poor’s : Provider Of Indexes And Credit Ratings
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and behavioral finance. Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.
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Understanding Standard & Poor’s
Standard & Poor’s grew out of two companies: Poor’s Publishing, a publisher of railroad industry guidebooks officially founded in 1868, and the Standard Statistics Bureau , founded in 1906, which published financial data on companies. In 1923, it released its first stock market indicator, which contained 233 companies. Poor’s Publishing, meanwhile, issued its first rating in 1916.
The two firms merged in 1941, to create Standard & Poor’s.
The McGraw-Hill Cos. purchased S& P in 1966. In 2012, Standard & Poors combined its index operations with Dow Jones Indices to become the leader in stock market indexes.
In 2016, McGraw Hill Financial rebranded itself as S& P Global. S& P Global divisions include S& P Global Ratings, S& P Global Market Intelligence, S& P Dow Jones Indices, and S& P Global Platts. The company has more than 1,500 credit analysts, and more than 1 million credit ratings have been issued on governments, corporations, the financial sector, and securities.
S& P is a major credit risk researcher, covering multiple industries, benchmarks, asset classes, and geographies. It issues credit ratings, ranging from AAA to D, on public and private company debt, as well as governments. It also offers ratings on short-term debt and provides outlook ratings that range from six months to two years.
S& P’s major competitors for credit ratings include Moody’s and Fitch, and for financial indices, Bloomberg Business Services.
Yield Spread: Junk Bonds Vs Investment Grade
Note: The frequent drops of the yield spread on the Junk Bond Demand chart usually appear on the ex-dividend date. The spread typically bounces back after the dividend is paid and normalizes over time.
FEAR & GREED INDEX FAQs
What is the CNN Business Fear & Greed Index?
The Fear & Greed Index is a way to gauge stock market movements and whether stocks are fairly priced. The theory is based on the logic that excessive fear tends to drive down share prices, and too much greed tends to have the opposite effect.
How is Fear & Greed Calculated?
The Fear & Greed Index is a compilation of seven different indicators that measure some aspect of stock market behavior. They are market momentum, stock price strength, stock price breadth, put and call options, junk bond demand, market volatility, and safe haven demand. The index tracks how much these individual indicators deviate from their averages compared to how much they normally diverge. The index gives each indicator equal weighting in calculating a score from 0 to 100, with 100 representing maximum greediness and 0 signaling maximum fear.
How often is the Fear & Greed Index calculated?
Every component and the Index are calculated as soon as new data becomes available.
How to use Fear & Greed Index?
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Standard & Poor’s Underlying Ratings
Standard & Poor’s Underlying Ratings provide an opinion on a municipality’s credit quality separate from guarantor or insurer credit enhancements. Municipal or other public sector bonds typically include credit enhancement which is used to obtain better terms by providing increased assurance that the borrower will honor its obligation through additional insurance or a third-party guarantee. Standard & Poor’s issues a SPURs rating only at the request of the issuer/obligor and maintains surveillance of an issue with a published SPUR.
Standard & Poor’s Indexes
The S& P 500 Index launched in March 1957. It was the first index to be computer-generated and to be published daily and has become a stand-in for the U.S. stock market itself.
The S& P 500 Index contains 500 of the largest stocks that trade on the New York Stock Exchange and Nasdaq, making it a tool to gauge the overall health of large American companies. The S& P 500 is probably the single most popular equity index in the world and is used as a performance benchmark for a variety of mutual funds, ETFs, and other assets and securities.
Other popular indexes offered by S& P Global cover different sectors of the market and different market capitalizations. Large offerings from S& P Dow Jones Indices include the S& P SmallCap 600, the S& P MidCap 400, the S& P Composite 1500, and the S& P 900. Each represents a look at market health based on its sub-sector.
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