South Korea tops MSCI equity indices YTD

Feb 6th, 2017 | By | Category: Equities

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Leading index provider to the exchange-traded fund industry MSCI has released its performance report for the period between 1 January and 6 February 2017, breaking down the best and worst performing equity indices over this period by countries, factors and sectors.

MSCI reports top performing country, factor and sector indices for January

MSCI reports the highest index returns in January were achieved by Korea, for country exposure; momentum, for factor exposure; and materials, for sector exposure.

The highest equity index returns were achieved by Korea, for country exposure; momentum, for factor exposure; and materials, for sector exposure.

Single Country Index Rankings

The best performing country was Korea (9.5%) 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 3.6%.

China, Australia, Canada, Switzerland and Germany also managed to outperform the ACWI over this period.

Using the forward Price/Earnings (P/E) ratio, the most expensive country is USA with a forward P/E of 17.5, and the cheapest is Korea with a forward P/E of 9.7. The market average ACWI forward P/E is 15.7.

China (11.9), Germany (13.6), the UK (14.2), France (14.3), and Japan (14.6) are also trading at forward P/E ratios below the market average.

MSCI Country

Source: MSCI.

Factor Index Rankings

The best performing factor was Momentum (4.8%) and the worst was Minimum Volatility USD (2.2%), while the market ACWI returned 3.6%.

Equal-weighted (4.7%) and risk-weighted strategies (3.9%) 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 18.1, and the cheapest is Value Weighted with a forward P/E of 13.1.

High dividend yield (13.8), equal-weighted (15.0) and risk-weighted (15.6) strategies are also trading at forward P/E ratios below the market average ACWI forward P/E of 15.7.

MSCI Factors

Source: MSCI.

Sector Index Rankings

The best performing sector was materials (7.3%) and the worst was energy (-2.3%), while the market ACWI returned 2.8%.

Information technology (5.2%), consumer discretionary (3.5%) and industrials (2.8%) 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 21.6 and the cheapest is financials with a forward P/E of 12.1.

Telecoms (14.7), utilities (14.9) and healthcare (15.2) are also trading at a forward P/E ratio below the market average ACWI forward P/E of 15.7.

MSCI Sectors

Source: MSCI.

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