The S&P 500 Top 20 Select Indices: A Deep Dive Into Mega-Cap Performance

Summary

• S&P 500 Top 20 Select Indices all had similar cumulative returns, as only a handful of mega-cap stocks would have exceeded the capping thresholds historically.
• Over the past decade, one of the drivers of performance of the S&P 500 Top 20 Select 35/20 Capped Index (GBP) has been the depreciation of the British pound sterling against the U.S. dollar post-Brexit.
• While the capping mechanism limits the extent of outperformance compared to the S&P 500 Top 20 Index, the S&P 500 Top 20 Select Index has historically had lower annualized volatility.

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By Fei Wang

In the first part of this blog series, we introduced the S&P 500® Top 20 Select Indices, including their construction and relevance to the equity market. Now, let's delve deeper into the indices' historical performance and relative performance to other similar