Leading index provider to the exchange-traded fund industry MSCI has released its performance report for February 2017, breaking down the best and worst performing equity indices over this period by countries, factors and sectors.
China was the best performer within MSCI’s range of country equity indices during February, with 3.5% growth.
MSCI reports the highest index returns in February were achieved by China, for country exposure; quality, for factor exposure; and health care, for sector exposure.
Single Country Index Rankings
The best performing country was China (3.5%) and the worst was Canada (-2.1%), while the broad market average, represented by the return on the MSCI All Country World Index (ACWI), was 2.2%. The USA and Australia 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 18.0 and the cheapest, Korea with a forward P/E of 9.3, while the market (ACWI) forward P/E is 15.9.
China (12.1), Germany (13.7), France (14.3), the UK (14.4), Japan (14.4), Canada (15.6) and Australia (15.8) 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 (11.0%).
Source: MSCI.
Factor Index Rankings
The best performing factor during February was quality (3.8%) and the worst was enhanced value (1.5%), while the market ACWI returned 2.2%.
Minimum volatility USD (3.6%), factor mix A series USD (2.9%), high dividend yield (2.7%) and risk-weighted strategies (2.4%) 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 18.4 and the cheapest, enhanced value with a forward P/E of 10.1, while the market (ACWI) forward P/E is 15.9.
High dividend yield (14.1), equal-weighted (15.1) and risk-weighted (15.8) 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 quality (7.0%).
Source: MSCI.
Sector Index Rankings
The best performing sector was healthcare (6.5%) and the worst was energy (-3.6%), while the market ACWI returned 2.2%.
Utilities (4.8%), consumer staples (4.3%), real estate (4.2%) and information technology (3.3%) 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 22.0 and the cheapest, financials with a forward P/E of 12.3, while the market (ACWI) forward P/E is 15.9.
Telecoms (14.9), materials (15.5), utilities (15.6) and consumer discretionary (15.8) 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 9.9% gain.
Source: MSCI.