Active Share: Active Share is a measure that indicates how different a portfolio’s holdings are from its benchmark. The value ranges from 0 to 100, with 0 indicating that the portfolio exactly replicates the benchmark and 100 indicating that it is completely different from the benchmark.
Basis Point: One basis point is equal to 0.01%, or one one-hundredth of a percent and 100 basis points equals 1%.
BAT: Commonly used acronym to describe the group of stocks comprised of Baidu, Alibaba and Tencent.
CFO to Debt: Trailing 12 Month Cash From Operations / Short & Long Term Borrowings.
Dead-Cat-Bounce: A dead cat bounce is a temporary, short-lived recovery of asset prices from a prolonged decline or a bear market that is followed by the continuation of the downtrend.
Dividend Coverage Ratio: Ratio which shows whether the company generates enough earnings for dividend payout, in actual units. Calculated as: Income Before Extraordinary Items Less Minority and Preferred Dvd / Total Cash Common Dividend.
Dividend Growth 5Y: Growth rate over five years in net dividend per share.
DPS (Dividend Per Share): Net amount of all dividends that have gone ‘EX’ in the last 12 months including special cash dividends. Calculated by summing all members’ Dividends Per Share 12 Month (Net) times shares in the index, divided by the index divisor.
Dow Jones: The Dow Jones Industrial Average® (The Dow®), is a price-weighted measure of 30 U.S. blue-chip companies. The index covers all industries except transportation and utilities.
Duration: Measure of price sensitivity to changes in yields.
EBITDA: Earnings before Interest, Taxes, Depreciation and Amortization.
Euro STOXX 50 Net Return USD Index: Capitalization weighted index of 50 European bluechip stocks.
Europe Earnings Yield: Historical earnings yield of the STOXX Europe 600 Price Index. The STOXX Europe 600 Price Index represents large, mid and small capitalization companies across 17 countries of the European region. This is calculated as the reciprocal of the P/E ratio.
FANG: Acronym commonly used to refer to the group of stocks; Facebook, Amazon, Netflix and Alphabet (Google)
Free Cash Flow – FCF: A measure of financial performance calculated as operating cash flow minus capital expenditures.
FY: Fiscal Year
German 10-Year Government Bond Yield: Represented by Germany Generic Government 10-Year Yield.
Government Bonds: Bloomberg Barclays US Treasury Total Return Unhedged USD Index. The Bloomberg Barclays US Treasury Index measures US dollar-denominated, fixed-rate, nominal debt issued by the US Treasury.
Leverage: An investment strategy of using borrowed money – specifically, the use of various financial instruments or borrowed capital – to increase the potential return of an investment.
Maximium Drawdown: Maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.
MSCI Europe Banks Net Total Return USD Index: The MSCI Europe Banks Index is composed of large and mid cap stocks across 15 Developed Markets countries in Europe. All securities in the index are classified in the Banks industry group (within the Financials sector) according to the Global Industry Classification Standard (GICS®).
MSCI Europe Net Total Return USD Index: The MSCI Europe Net Index is a free-float weighted equity index designed to measure the equity market performance of the developed markets in Europe.
Nasdaq 100: The NASDAQ-100 Index is a modified capitalization weighted index of the 100 largest and most active non-financial domestic and international issues listed on the NASDAQ. No security can have more than a 24% weighting. The index was developed with a base value of 125 as of February 1, 1985. Prior to December 21,1998 the Nasdaq 100 was a cap-weighted index.
Net Debt to EBITDA: Measure computes the company’s ability to pay off its debt by utilizing the earnings before interest, taxes, depreciation and amortization (EBITDA).
Portfolio Yield: Weighted average dividend yield of the underlying constituents. Dividend Yield: The most recently announced gross dividend, annualized based on dividend frequency, then divided by the current market price.
Price/Book: The ratio of a stock’s price divided by the book value per share.
Price/earnings Ratio (P/E): The price to earnings ratio, which equals the security’s current price divided by the earnings per share (price/eps).
R.O.W.: Rest of world.
REITs: Real Estate Investment Trusts.
Risk-Adjusted Return: How much return your investment has made relative to the amount of risk the investment has taken over a given period of time. It is calculated by measuring the 10Y annualized return divided by the 10Y volatility. Past performance does not guarantee future results.
Risk: Measured using volatility which is a statistical measure calculated as the standard deviation of monthly returns annualized over the respective period. Commonly, the higher the volatility, the riskier the security.
ROA (Return on Assets): Indicator of how profitable a company is relative to its total assets, in percentage. Calculated as (Trailing 12M Net Income / Average Total Assets) x 100. Higher ROA: Defined as companies with ROA that is above the average for the sector. Lower ROA: Defined as companies with ROA that is below the average for the sector.
Russell 1000 Value Index: Measures the performance of those Russell 1000 companies with lower price-to-book ratios and lower forecasted growth values.
S&P 500 Dividends: Gross amount of all dividends that have gone EX in the last 12 months, including special cash dividends. Calculated by summing all members Dividends Per Share 12 Month (Gross) times shares in the index, divided by the index divisor.
S&P 500 Index: The S&P 500® is widely regarded as the best single gauge of large-cap U.S. equities and serves as the foundation for a wide range of investment products. The index includes 500 leading companies and captures approximately 80% coverage of available market capitalization.
S&P Global 1200 Information Technology Index: The S&P Global 1200 Information Technology index consists of all members of the S&P Global 1200 that are classified within the GICS® information technology sector.
Sales Growth TTM: Trailing 12 months.
STOXX Europe 600 Price Index EUR: The STOXX Europe 600 Index is derived from the STOXX Europe Total Market Index (TMI) and is a subset of the STOXX Global 1800 Index. With a fixed number of 600 components, the STOXX Europe 600 Index represents large, mid and small capitalization companies across 17 countries of the European region.
Technology Select Sector Total Return Index: The Technology Select Sector Index is a modified cap-weighted index. The index is intended to track the movements of companies that are components of the S&P 500 and are involved in the development or production of technology products. The index which serves as a benchmark for The Technology Select Sector SPDR Fund XLK, was established with a value of 250 on June 30, 1998.
Upside/Downside Capture Ratio: Measure to demonstrate relative performance against a broad benchmark during periods of market strength or weakness. Reference Benchmark: Russell 2000.
VIX: The VIX Index is a calculation designed to produce a measure of constant, 30-day expected volatility of the U.S. stock market, derived from real-time, mid-quote prices of S&P 500® Index (SPX℠) call and put options. On a global basis, it is one of the most recognized measures of volatility — widely reported by financial media and closely followed by a variety of market participants as a daily market indicator.
Volatility: A statistical measure of risk. Volatility can either be measured by using the standard deviation or variance between returns from a security or market index. Commonly, the higher the volatility, the riskier the security. The 260-day price volatility equals the annualized standard deviation of the relative price change for the 260 most recent trading days closing price, expressed as a percentage.
Worst Drawdown: Maximum observed loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum drawdown is an indicator of downside risk over a specified time period.
Yield: Aggregate 12 Month Dividend Per Share divided by the current security last price. Yield refers to the earnings generated and realized on an investment over a particular period of time and is expressed in terms of percentage based on the invested amount or on the current market value or on the face value of the security.
Yield Trap: A high-yield dividend stock whose payout is simply too good to be true or to be sustainable.