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Separately Managed Accounts (SMAs)
A SMA is a portfolio of assets under the management of a professional investment firm. One or more portfolio managers are responsible for day-to-day investment decisions, supported by a team of analysts, operations and administrative staff. SMAs differ from pooled vehicles like mutual funds in that each portfolio is unique to a single account (hence the name). In other words, if you set up a separate account with Money... -
Sharpe Ratio
Using the Sharpe ratio is one way to compare the relationship of risk and reward in following different investment strategies, such as emphasizing growth or value investments, or in holding different combinations of investments. To figure the ratio, the risk-free return is subtracted from the average return of an investment portfolio over a period of time, and the result is divided by the standard deviation of the return. A... -
Sharpe Ratio
A measure of a fund’s historical returns adjusted for risk or volatility. The calculation is fund return minus the return on 3-month treasury bills divided by the fund standard deviation. (Source: ETF Guide) -
Short (Short Position)
The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value. In the context of options, it is the sale (also known as “writing”) of an options contract. Opposite of “long (or long position).” For example, an investor who borrows shares of stock from a broker and sells them on the open market is said to have a short position in... -
Short Duration
Short Duration are bonds with shorter-dated maturities. -
Small Cap
Small cap refers to stocks with a relatively small market capitalization. The definition of small cap can vary among brokerages, but generally it is a company with a market capitalization of between $300 million and $2 billion. One of the biggest advantages of investing in small-cap stocks is the opportunity to beat institutional investors. Because mutual funds have restrictions that limit them from buying large portions of any one... -
Sovereign Bonds
A debt security issued by a national government within a given country and denominated in a foreign currency. The foreign currency used will most likely be a hard currency, and may represent significantly more risk to the bondholder. The government of a country with an unstable economy will tend to denominate its bonds in the currency of a country with a stable economy. Because of default risk, sovereign bonds... -
Spin Off
In a spin-off, a company sets up one of its existing subsidiaries or divisions as a separate company. Shareholders of the parent company receive stock in the new company based on an evaluation established for the new entity. In addition, they continue to hold stock in the parent company. The motives for spin-offs vary. A company may want to refocus its core businesses, shedding those that it sees as... -
SPIVA Scorecard
SPIVA Scorecard is a published performance report byS&P Dow Jones Indices. SPIVA is the acronym for the scorecard –S&P Indices Versus Active funds (SPIVA). Active funds are the funds that attempt to offer some sort of superior return relative to some benchmark.(Source: S&P Dow Jones Indices)
