Fashionably Late Cycle: The S&P 500 Market Leaders Index
The S&P 500 Market Leaders Index, launched on Nov. 11, 2024, aims to address challenges in a late-cycle economy characterized by high growth, rising inflation, and market volatility. It tracks leading companies with high free cash flow margins and strong returns on invested capital. Historically, the index has outperformed the S&P 500 during downturns, demonstrating lower volatility and a defensive quality strategy. It includes five of the Magnificent 7 companies and may offer diversification benefits in late-cycle market conditions.
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