S&P Capital IQ Builds out Alpha Factor Library with SNL Data Integration
S&P Capital IQ has grown its library of alpha factors five-fold since its launch in 2008.
The Alpha Factor Library, which was launched in 2008 and is available on the S&P Capital IQ platform and the vendor’s Xpressfeed datafeed, provides access to a range of investment strategies—or “alpha factors”—supported by academic or industry research, as well as systematic screening of stocks based on fundamental or technical criteria, and historical back-testing that can assist in the development of stock selection models.
Initially, the library provided data and analytics for 100 North American stocks, but over the past few years, S&P Capital IQ has grown the coverage to more than 500 alpha factors for over 40,000 companies in 90 countries. The library contains signals going back to 1987 for North American stocks, 1995 for international stocks, and daily values from 2007. Most recently, the vendor introduced 115 industry-specific signals utilizing S&P Capital IQ’s industry data, including same-restaurant sales growth, combined ratios for insurance companies, airline revenue passenger-mile growth, and wireless penetration rate in the telecom market.to .
After the $2.225 billion cash acquisition of SNL, S&P Capital announced that it would combine its S&P Capital IQ data business with SNL Financial’s data assets on financial institutions, real estate and energy markets to “capitalize on the fast-growing global market for deep and accurate information,” officials said.
"With S&P Capital IQ's industry specific data sets, we worked with equity analysts, and combined a quantitative approach to identify the value drivers of each of the industries, carried out research and come up with strategies to incorporate that information in a way that no one has done before," says Kirk Wang, director of product management at S&P Capital IQ and SNL. "We already [plan] to develop more industry factors using the... SNL industry data in 2016".
In addition, the vendor plans to leverage academic papers internal research on profitability and institutional ownership to create new investment ideas within the Alpha Factor Library that the vendor identified from its research.
The alpha factors are used by fundamental and quantitative investors, funds of funds, exchange-traded fund providers and other investment professionals. “Our goal is to help people identify new sources of alpha based on data we have,” Wang says.
Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.
To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: https://subscriptions.waterstechnology.com/subscribe
You are currently unable to print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (point 2.4), printing is limited to a single copy.
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. As outlined in our terms and conditions, https://www.infopro-digital.com/terms-and-conditions/subscriptions/ (clause 2.4), an Authorised User may only make one copy of the materials for their own personal use. You must also comply with the restrictions in clause 2.5.
If you would like to purchase additional rights please email info@waterstechnology.com
More on Emerging Technologies
The quantum leap: How investment firms are innovating with quantum tech
While banks and asset managers are already experimenting with quantum computing to optimize operations, they should also be proactive in adopting quantum-safe strategies.
‘The end of the beginning’: Brown Brothers Harriman re-invents itself
Voice of the CDO: Firms who want to use AI successfully better start with their metadata, says BBH’s Mike McGovern and Kevin Welch.
2026 will be the year agent armies awaken
Waters Wrap: Several AI experts have recently said that the next 12 months will see significant progress for agentic AI. Are capital markets firms ready for this shift from generative AI to agents?
Editor’s Picks: Our best from 2025
Anthony Malakian picks out 10 stories from the past 12 months that set the stage for the new year.
The next phase of AI in capital markets: from generative to agentic
A look at some of the more interesting projects involving advanced forms of AI from the past year.
Market data costs defy cyclicality
Trading firms continue to grapple with escalating market data costs. Can innovative solutions and strategic approaches bring relief?
As trading firms embrace AI, so do hackers
According to a Google cybersecurity report, cybercriminals are turning to AI to sharpen their attacks.
AI & data enablement: A looming reality or pipe dream?
Waters Wrap: The promise of AI and agents is massive, and real-world success stories are trickling out. But Anthony notes that firms still need to be hyper-focused on getting the data foundation correct before adding layers.