So What's New?

US index-based ETFs tracking a cap-weighted or equal-weighted index for one of the 11 primary economic sectors today account for about $500B AUM.  Index funds became dominant because the vast majority of human portfolio managers underperform such simple indexes. Unfortunately, the managers who beat indexes regularly are known only in hindsight...  and we all know that past performance is no guarantee of future performance and that there is no guarantee that the manager will not take a better job elsewhere.

SumGrowth has finally decided to seriously apply its three decades of R&D in adaptive momentum and Dual Defense risk mitigation methodologies of ETFs and mutual funds directly to more volatile stock portfolios. Although stocks are a much more complex data analysis problem than ETFs and mutual funds, in the end, stocks are just a set of more volatile pieces of the same animal. 

Each of the 11 NewSector lndexes will consist of a portfolio of 16 (or more) 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.