Research Quarterly: Equities, Second Quarter 2020

The U.S. equity markets are the largest in the world and continue to be among the deepest, most liquid and most efficient, representing 40.9% of the $85 trillion global equity market cap, or $35 trillion (as of May 2020). This is 4.1x the next largest market, EU. U.S. market share has averaged 37.2% over the last 10 years, troughing at 31.4% in 2010 and peaking this year at 44.9%.

Markets started to expand in the quarter, after falling in 1Q20 with the emergence of Covid-19. The S&P 500 index averaged 2,931.69 for the quarter and 3,104.66 for June, 2Q20 +1.7% Y/Y (peak 3,104.66, trough 2,761.98); the DJIA averaged 24,570.83 and 26,062.27, 2Q20 -5.8% Y/Y (peak 26,062.27, trough 23,293.90); the Nasdaq averaged 9,091.00 and 9,839.97, 2Q20 +15.5% Y/Y (peak 9,839.97, trough 8,292.41); and the Russell 2000 averaged 1,319.53 and 1,434.16, 2Q20 -14.8% (peak 1,434.16, trough 1,203.10). The VIX declined from the high in 1Q20 averaging 34.52 for the quarter and 31.18 for June, 2Q20 +127.3% Y/Y (peak 41.45, trough 30.90).

ADVs were up Y/Y for all three segments covered in this report. Equity ADV was 12.4B shares for the quarter, +78.1% Y/Y (peak 13.3B, trough 11.3B). Options ADV was 28.2M contracts for the quarter, +46.5% Y/Y (peak 31.3M, trough 26.1M). ETF ADV was 2.26B shares or the quarter, +66.1% Y/Y (peak 2.74B, trough 1.92B).

For capital formation, total equity issuance was $137.7B for the quarter (+85.7% Y/Y) and the total IPO value was $16.9B (-37.3% Y/Y). The number of IPOs was down 37.7% Y/Y but up 58.3% Q/Q. Private equity deal value fell 57.5% Y/Y and 37.9% Q/Q.

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