S&P Launches Balanced Indexes Combining Equities & Fixed Income

Standard & Poor’s has launched a new balanced series of indexes that combine equities and fixed income and that range from conservative to growth.

The S&P Balanced Equity and Bond Indices measure S&P core asset classes of equity and fixed income, with U.S. Treasury pricing provided by BGCantor Market Data.

The S&P Balanced Equity and Bond – Conservative Index has a 75% long weight in the S&P/BGCantor 7-10 Year U.S. Treasury Bond Index and a 25% long weight in the S&P 500 Total Return Index.

The S&P Balanced Equity and Bond – Moderate Index has a 50% long weight in the Treasury Bond Index and a 50% long weight in the Total Return Index.

The S&P Balanced Equity and Bond – Growth Index has a 75% long weight in the Total Return Index and a 25% long weight in the Treasury Bond Index.

“The diversification benefit of holding a portfolio of assets with low correlation is well documented,” said Michael Kondas, associate director of fixed income indices at S&P Indices. “The launch of these new indices allows investors to potentially take advantage of the historically slight correlation in the returns of U.S. equities and U.S. Treasuries.”

All of the indices included in this new series will be rebalanced quarterly.