E&R U.S. 500 Beats S&P 500 by 8.33%

Exceptional & Rich U.S. 500 [E&R U.S. 500] is based on an open method that is designed to beat [Outperform] the S&P 500 without concentrating on a few stocks. Concentration in the S&P 500 not only creates risk but also forces the overall market into a long recovery period. The E&R U.S. 500 model started in January 2021 is still positive with an 8.33% absolute return while the S&P 500, with the same 500 stocks is flat and ready to get underwater by end of the day today.?

How did this happen? Concentration is like sugar, it is good for a short-term kick of excitement, looking at an increasing value of your 401K portfolio but in the long term, the same concentrated sugar is injurious to your pension and hence to your health. Unlike S&P 500’s most concentrated stock at 7.3% value of the total portfolio, E&R U.S. 500 top concentrated stock is a meager 1.09% of the total portfolio value.?

Sooner or later, the world will wake up to the dangers of concentration. Meanwhile, you can enjoy your friendly low concentrated openly Indexed portfolio.

Figure 1 - E&R U.S. 500 Jan 2021 Open Indexed Model Portfolio vs. SPY.

Figure 2 - E&R U.S. 500 Jan 2021 least weighted components and their profit and loss.

Figure 3 - E&R U.S. 500 Jan 2021 top weighted components and their profit and loss.

Figure 4 - E&R U.S. 500 Jan 2021 performance metrics vs. SPY

Figure 5 - The S&P 500 has 12 stocks making 31% of the total value. While the rest 69% is made of 488 stocks.

Figure 6 - The E&R 500 has 12 stocks making 17% of the total value. While the rest 83% is made of 488 stocks.

Figure 7 - The Average % Price Change vs. Average % Weight for the top 12 components in discussion since Jan 2021.

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Have a great weekend.

AlphaBlock Team