MSCI has released its index performance report for June 2017, breaking down the best and worst performing equity indices over this period by country, factor and sector.
Financials topped MSCI’s list of global sector indices during June with a 4.1% return.
The index provider, which is one of the leading providers of equity indices to the exchange-traded fund industry, reports the highest index returns in June were achieved by financials, for sector exposure, while Canada and enhanced value topped the lists of country and factor exposures respectively.
Sector Index Rankings
The best performing sector was financials (4.1%) and the worst was telecom services (-2.5%), while the market ACWI returned 0.5%.
Healthcare (2.7%), materials (1.4%), real estate (0.8%) and industrials (0.8%) also outperformed the ACWI over this period.
Using the forward P/E, the most expensive sector is real estate with a forward P/E of 28.6 and the cheapest, financials with a forward P/E of 12.1, while the market (ACWI) forward P/E is 15.9.
Telecoms (14.4), materials (14.6), and utilities (15.2) are also trading at a forward P/E ratio below the market average ACWI forward P/E of 15.9.
The sector with the strongest YTD return is information technology with a 20.7% gain. Healthcare (16.2%), industrials (13.5%), consumer discretionary (12.5%) and consumer staples (11.9%) have also outperformed the ACWI’s 11.8% YTD return.
Source: MSCI.
Single Country Index Rankings
The best performing country was Canada (3.1%) and the worst was the UK (-1.9%), while the broad market average, represented by the return on the MSCI All Country World Index (ACWI), was 0.5%. Australia (2.9%), China (2.4%), Japan (1.1%), Korea (1.0%) and the US (0.6%) also managed to outperform the ACWI over this period.
Using the forward Price-to-Earnings ratio, the most expensive country is the USA with a forward P/E of 18.1 and the cheapest, Korea with a forward P/E of 9.4, while the market (ACWI) forward P/E is 15.9.
China (12.7), Germany (13.3), Japan (14.1), the UK (14.3), France (14.6), Canada (15.0) and Australia (15.4) are also trading at forward P/E ratios below the market average.
The country with the largest year-to-date (YTD) index growth is Korea (28.9%). China (25.0%), Switzerland (19.1%), France (17.9%), and Germany (16.0%) have also outperformed the ACWI’s YTD return of 11.8%.
Source: MSCI.
Factor Index Rankings
The best performing factor was enhanced value (1.5%) and the worst was quality (-0.6%), while the market ACWI returned 0.5%.
Momentum (0.7%), equal-weighted (0.6%) and risk-weighted (0.5%) also outperformed the broad market ACWI over this period.
Using the forward P/E, the most expensive factor is minimum volatility USD with a forward P/E of 18.9 and the cheapest, enhanced value with a forward P/E of 9.7, while the market (ACWI) forward P/E is 15.9.
High dividend yield (13.9), equal-weighted (15.0) and risk-weighted (15.9) strategies are also trading at forward P/E ratios below the market average ACWI forward P/E of 15.9.
The factor with the strongest YTD index growth is momentum (16.7%). Quality (14.2%), equal-weighted (13.7%), risk-weighted (13.0%) and enhanced value (12.1%) have also outperformed the ACWI’s 11.8% YTD return.
Source: MSCI.