OEF: A Simple Way To Beat SPY
Summary
- OEF offers a simple, effective strategy by focusing on the largest 100 S&P 500 companies, leading to strong historical outperformance versus SPY.
- The ETF's heavy technology sector weighting and concentration in top performers drive returns, though they introduce some concentration risk.
- Despite a higher expense ratio than IVV, OEF's focus on winners and automatic removal of laggards make it a compelling choice for long-term investors.
- Given its track record and logical approach, I rate OEF a buy and prefer it over standard S&P 500 ETFs.
Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.