Performance of Quality Factor Across Markets: USA,Europe, and India
The performance of the Quality factor across the USA, Europe, and India has demonstrated consistent outperformance against their respective benchmarks, highlighting its effectiveness as a long-term investment strategy.
Across all the markets the quality factor index has historically outpaced their respective benchmark, particularly during periods of economic uncertainty, showcasing the resilience of high-quality companies with strong financials. The strong performance of the Quality index in comparison to respective benchmarks in downturns, reinforces the defensive nature of Quality stocks.
Source : Bloomberg. This chart depicts the growth in the NAV of S&P 500 Quality TRI vis-a-vis that of the S&P 500 TRI over the period 5th July 1995 to 31st December 2024. All the NAVs are in USD and have not been converted to INR. All the indices have been scaled to $1,000 as of 5th July 1995. Past performance may or may not be sustained in future and is not an indication of future return.
Source : Bloomberg. This chart depicts the growth in the NAV of S&P Europe 350 Quality TRI vis-a-vis that of the S&P Europe 350 TRI over the period 15th July 2014 to 31st December 2024. All the NAVs are in EUR and have not been converted to INR. All the indices have been scaled to €1,000 as of 15th July 2014. Past performance may or may not be sustained in future and is not an indication of future return.
Source : NSE. This chart depicts the growth in the NAVs of Nifty 500 Quality 50 TRI vis-a-vis that of the Nifty 500 TRI over the period 1st April 2005 to 31st December 2024. All the indices have been scaled to Rs.1,000 as of 1st April 2005. Past performance may or may not be sustained in future and is not an indication of future return.
Period-wise Summary of Factor Performance: Quality Vs Market
| Region |
Period |
Annualised Return (%) |
3-Year Median Rolling Return (%) |
10-Year Median Rolling Return (%) |
| Quality |
Market |
Quality |
Market |
Quality |
Market |
| USA |
Jul 5, 1995 - Dec 31, 2000 |
26.42 |
19.32 |
27.24 |
25.80 |
- |
- |
| Jan 1, 2001 - Dec 31, 2006 |
6.49 |
2.94 |
10.40 |
8.98 |
- |
- |
| Jan 1, 2007 - Dec 31, 2012 |
6.42 |
2.29 |
4.56 |
1.58 |
- |
- |
| Jan 1, 2013 - Dec 31, 2018 |
11.20 |
12.15 |
9.86 |
10.90 |
- |
- |
| Jan 1, 2019 - Dec 31, 2024 |
17.81 |
16.95 |
11.64 |
10.35 |
- |
- |
| Entire Period |
13.21 |
10.36 |
11.81 |
11.20 |
11.00 |
7.98 |
| Europe |
Jul 15, 2014 - Dec 31, 2018 |
6.92 |
2.97 |
6.39 |
3.61 |
- |
- |
| Jan 1, 2019 - Dec 31, 2024 |
11.90 |
10.55 |
8.34 |
8.99 |
- |
- |
| Entire Period |
9.75 |
7.25 |
8.44 |
7.60 |
10.09 |
7.60 |
| India |
Apr 1, 2005 - Dec 31, 2012 |
18.83 |
14.79 |
16.46 |
8.58 |
- |
- |
| Jan 1, 2013 - Dec 31, 2018 |
16.45 |
12.75 |
16.29 |
13.11 |
- |
- |
| Jan 1, 2019 - Dec 31, 2024 |
19.21 |
17.20 |
20.74 |
19.28 |
- |
- |
| Entire Period |
18.23 |
14.96 |
16.37 |
13.11 |
16.49 |
12.75 |
Source : Bloomberg, NSE. Past performance may or may not be sustained in future and is not an indication of future return. The S&P 500 Quality TRI, S&P Europe 350 Quality TRI, & Nifty 500 Quality 50 TRI are used to represent the Quality index for the USA, Europe and India regions respectively. The S&P 500 TRI, S&P Europe 350 TRI, & Nifty 500 TRI are used to represent the market index for the USA, Europe and India regions respectively.
