An update on the US portfolio long term performance

3 min read

As of the last recorded data, the Nasdaq index has experienced a significant rally, surging by 41% since the beginning of 2023. On the other hand, the S&P 100 index has only seen a 24.9% increase during the same period. This discrepancy can be attributed to the remarkable performance of tech stocks in the Nasdaq index. 

Interestingly, the broader market seems to be lagging behind. The Russell 2000, which represents mid and small-cap stocks in the US market, has only risen by 2.7%. This suggests that the market’s upward movement is primarily driven by a few top-performing stocks, while the majority of stocks are not experiencing the same level of growth. 

To gain a better understanding of the market dynamics, it is important to analyse the top ten constituents of the S&P 100 index. These include major tech giants such as Microsoft, Apple, Amazon, Nvidia, Alphabet (Google), Meta (Facebook), Berkshire, and Tesla. These tech stocks have a significant influence on the S&P 100 index, as they contribute to 45% of its weight. 

This heavy weighting of tech stocks explains the impressive 24% rally of the S&P 100 index. The success of these top constituents has played a crucial role in boosting the overall performance of the index. 

To gain a better understanding of the market dynamics, it is important to analyse the top ten constituents of the S&P 100 index. These include major tech giants such as Microsoft, Apple, Amazon, Nvidia, Alphabet (Google), Meta (Facebook), Berkshire, and Tesla. These tech stocks have a significant influence on the S&P 100 index, as they contribute to 45% of its weight. 

This heavy weighting of tech stocks explains the impressive 24% rally of the S&P 100 index. The success of these top constituents has played a crucial role in boosting the overall performance of the index. 

To compare the performance of the S&P 100 index and the Nasdaq 100 index with another momentum-focused investment option, let’s consider the MTUM ETF. This exchange-traded fund, managed by BlackRock, is renowned for its focus on momentum investing.

Surprisingly, the MTUM ETF has not outperformed the S&P 100 or the Nasdaq 100. It has only achieved a 5.7% increase, which is in line with the broader market trend. This suggests that other momentum-based investment options have not been as successful as the S&P 100 and Nasdaq 100.

Now, let’s explore the performance of the US Top 10 strategy. As an educational product offered by Weekend Investing, the strategy aims to provide insights into momentum investing. Over the past six months, the US Top 10 strategy has yielded a 14% rise, surpassing the S&P 100 index.

The strategy’s outperformance continues over longer periods. Over the past year, it has achieved an 8.4% increase compared to the S&P 100’s 4.6%. Looking at the last three years, the strategy has achieved a 22.6% increase while the SNP 100 only saw a 16.6% rise. Since its inception, the US Top 10 strategy has generated a remarkable 13.9% increase, outperforming the S&P 100’s 8% increase.

This historical data demonstrates the effectiveness of the US Top 10 strategy in consistently outperforming the underlying index. It highlights the potential of momentum investing in generating superior returns. 

If you have any questions, please write to support@weekendinvesting.com

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October 30, 2023 by Weekend Investing

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    An update on the US portfolio long term performance