How does US Growth Work?
Capital Appreciation Combining Two Premium Portfolios
Designed for investors with an interest in US markets and who are mostly looking for returns via capital appreciation rather than dividend income, with the benefit of expert analysis.
US Growth is a 14-stock portfolio that combines systematic technical and fundamental analysis. It combines two of our popular US portfolios; US Value and US Momentum, giving you the benefit of both strategies.
Need to Know
|Goal||Market||Risk||Combines||Re-balance||Horizon||Minimum Suggest Investment|
|Growth via capital appreciation||US||High||US Value & US Momentum||Monthly||Multi-year||$2000 per stock (model uses $5000)|
Why Follow US Growth?
With US Growth, you get the combination of two of our popular systematic portfolios; US Value which uses fundamental factors, and US Momentum which uses technical factors. We hold the top-ranked seven stocks from each portfolio, giving you the benefit of both.
We developed this portfolio to make it easier for investors wanting to use US Value and US Momentum together as a growth portfolio with a similar return profile but lower short-term volatility than the individual portfolios.
How do I Follow US Growth?
We’ve designed this portfolio to be easy to follow with these steps:
- Buy: Buy the stocks in the table in equal weights. Weights can drift over time as stock prices move, but we will only recommend re-balancing stock weights if they stray too far from the target weight. The stock volumes are based on a $5,000 investment per stock.
Note: For this portfolio, stock prices are in US dollars. In order to get the Australian dollar value, you will need to apply the current exchange rate.
- Re-balancing: When you subscribe to this portfolio, you will receive the re-balancing notification once a month which provides an updated list of stocks. You sell any stocks that are no longer on the list. After these stocks are sold, the new stocks from the current table can be bought.
Please note that the underlining portfolios remain unchanged and those members who wish to continue to follow the 10 stock portfolios can consult the portfolios at any time.
|US Growth Benefits from Two Premium Portfolio Strategies|
Based purely on the performance of the stock’s share price. We take advantage of the “momentum effect” by buying the top 10 momentum stocks which are a member of either the S&P100 or the Nasdaq100.
This portfolio sources a pool of large-capitalization US stocks based on two key financial metrics; Return on Capital Employed (ROCE), and Earnings Sustainability. The final portfolio is generated by ranking on dividend yield. The lower the yield, the higher the ranking.
Please note that this article contains back-tested data which shows how the model would have performed using historical data. “Backtest” results are neither an indicator nor a guarantee of future returns.
To learn more about how we calculate performance click here.