Everyone understands that index funds became dominant because human portfolio managers, on average, underperform simple indexes. And, the managers who beat indexes regularly are rare and generally only known in hindsight. US ETFs that track one of the 11 primary economic sectors today account for over $450B AUM.
It shouldn't be surprising that SumGrowth would eventually apply its three decades of R&D in adaptive momentum and bear market strategies directly to stock portfolios. Although they are a much more complex data analysis problem than ETFs and mutual funds, in the end, stocks are not really a different animal, just more pieces of the same animal.
Each of the 11 NuSectors lndexes will consist of a portfolio of 20+ stocks that are members of the associated GICS sector. The Index will employ a rules-based adaptive momentum algorithm to evaluate candidate stocks at each month-end, from which a set of weighted momentum leaders is selected. The Index will additionally employ our Dual Defense methodologies to mitigate risk in bear markets.
We invite your comments, questions, or enthusiasm! Please Contact Us Here.
While our low-noise adaptive momentum and defensive algorithms are quite well developed, the logistics of managing the ever-changing universe of stocks within each of the GICS sectors must developed for proper index performance modeling. The priority will elevate over the year.
Estimated Debut: Late 2024
(Stay Tuned)
The Alpha Sheet Alpha Stocks Portfolio demonstrates that the principles of our adaptive momentum and Dual Defense methodologies can be effective for stocks as well as ETFs.
The Alpha Sheet delivers 16 superior model portfolios to your inbox at each monthly rebalance that include trade signals and client-friendly charts. Plus, you'll get our weekly Sunday Snapshot illustrating recent market activity. Our low-noise momentum signals improve the selection of bull market leaders and our Dual DefenseTM indicators provide much better bear market exits.
SumGrowth Indexes: A service of SumGrowth, Inc.
11536 Riviera PL NE Seattle, WA 98125 US
Copyright © 2019-2024 SumGrowth Indexes - All Rights Reserved.
SumGrowth Indexes is a trademark of SumGrowth, Inc.
Learn to Skip the Screen and Go Have a Life!