Research Quarterly: Equities, Fourth Quarter 2019

The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 38.8% of the $94 trillion global equity market cap, or $36 trillion (as of FY19). This is 3.8x the next largest market, the EU (excluding the U.K.). U.S. market share has averaged 36.9% over the last 10 years, troughing at 31.4% in 2010 and peaking at 40.8% in 2018.

Markets continued to expand, with the S&P 500 index averaging 3,136.44 for the quarter and closing at 3,230.78 in December, +17.9% for the year (monthly average 2,937.96, peak 3,230.78, trough 2,704.10); the DJIA averaged 27,878.69 and closed at 28,538.44, +13% for the year (monthly average 26,556.06, peak 28,538.44, trough 24,815.04); and the Nasdaq averaged 8,643.48 and closed at 8,972.60 (monthly average 8,013.87, peak 8,972.60, trough 7,281.74). The VIX was down this quarter averaging 13.21 and closing at 13.78 in December, -38.8% (peak 18.98, trough 12.62) after the December 2018 pop of 25.42. Looking at VIX for the year, 2019 monthly average was 15.24 versus 16.95 LY, -10.0%.

ADVs were down for all three segments covered in this report. Equity ADV was 6.8B for the quarter, -20.3% Y/Y (for the year: for the year: average 7.0B, peak 7.5B, trough 6.8B). Options ADV was 20.1M for the quarter, -11.4% Y/Y (for the year: average 19.6M, peak 20.1M, trough 19.3M). ETF ADV was 1.25B for the quarter, -37.6% Y/Y (for the year: average 1.38B, peak 1.69B, trough 1.14B).


The performance of capital formation was mixed, with total equity issuance of $50.7B for the quarter up 53.9% Y/Y, total IPO value of $6.3B down 17.1% Y/Y (on a dollar basis). Total equity issuance was up 2.9% last year, but number of IPOs were down (-18.4%).

Download the full report for all data, tables and the chart book.

About the Report

A quarterly report containing brief commentary and statistics on the U.S. cash equities, multi-listed options, ETFs and capital formation.

Authors

SIFMA Research

  • Katie Kolchin, CFA, Director of Research
  • Justyna Podziemska
  • Ali Mostafa