Ahoy Matey!

An ETF Package That Outperforms the S&P 500

This approach combines elements of two investment approaches. The first, equally weighting market sectors, is similar to an equally weighted S&P 500 Index, which has been shown to outperform the market cap weighted S&P 500. This outperformance introduces a small cap bias to the equally weighted S&P 500, and small cap stocks have done well thsi decade. The second element, reinvesting in the worst performing sector, is simply buying out of favor stocks. Staying power is crucial to success with such investment strategies. Putting the two together may or may not result in excess returns over the longer periods than the seven years the author examined.