Research Quarterly: Equities, Third 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 40.0% of the $86 trillion global equity market cap, or $36 trillion (as of June 2020). This is 3.9x the next largest market, China. U.S. market share has averaged 37.2% over the last 10 years, troughing at 31.4% in 2010 and peaking at 40.8% in 2018.

Markets expanded further in the quarter, erasing losses from 1Q20 caused by the emergence of Covid-19. The S&P 500 index averaged 3,319.83 for the quarter and 3,365.52 for September, 3Q20 +12.2% Y/Y (peak 3,580.84, trough 3,115.86); the DJIA averaged 27,299.04 and 27,733.40, 3Q20 +2.3% Y/Y (peak 29,100.50, trough 25,706.09); the Nasdaq averaged 10,926.83 and 11,088.68, 3Q20 +35.4% Y/Y (peak 12,056.44, trough 10,154.63); and the Russell 2000 averaged 1,511.91 and 1,517.95, 3Q20 -1.5% (peak 1,592.29, trough 1,398.92). The VIX declined further to averaging 26.37 for the quarter and 27.65 for September, 3Q20 +65.2% Y/Y (peak 33.60, trough 21.35).

ADVs were up Y/Y for all three segments covered in this report. Equity ADV was 9.9B shares for the quarter, +43.5% Y/Y (peak 14.4B, trough 7.9B). Options ADV was 29.5M contracts for the quarter, +49.2% Y/Y (peak 45.5M, trough 21.5M). ETF ADV was 1.63B shares or the quarter, +15.5% Y/Y (peak 2.88B, trough 1.13B).

For capital formation, total equity issuance was $83.6B for the quarter (+43.3% Y/Y) and the total IPO value was $31.0B (+196.0% Y/Y). The number of IPOs was up 133.3% Y/Y. Private equity deal value fell 40.9% Y/Y but was up 1.4% 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