Index Performance
Overview
Description
This index is based on the assumption that 1) the SP500, although a great index, is filled with low quality companies and that 2) company quality can be evaluated mainly on the return it gets on its invested capital (ROIC) as said by notable investors (Munger, Smith, etc.). Following these assumptions, this index was made by taking the the 40 (number to be revised) top businesses in the SP500 based on their ROIC and weighting them according to their market cap to reduce the need for rebalancing. Although the index beats the SP500, it does have a few problems which will need to be addressed. For one since the index is market cap weighted, Apple holds a very large part of the pie. This exposure could be reduced with more diversification. However, doing so might reduce returns since the more business are added, the lesser the quality of the index.
- TickerQYIX
- Inception Date08/18/2023
- WeightingMarket Cap
- # of holdings40
What's inside?
Holdings
All holdings as of March 5, 2025
| Apple, Inc. (AAPL) | 53.38% | $3.54T | 3.95% | 46.88% | 9.89 |
| Mastercard, Inc. (MA) | 7.69% | $509.01B | 12.07% | 96.30% | 17.68 |
| The Home Depot, Inc. (HD) | 5.74% | $383.79B | 4.48% | 31.52% | 2.99 |
| Texas Instruments Incorporated (TXN) | 2.71% | $178.03B | -10.72% | 58.14% | 11.45 |
| QUALCOMM, Inc. (QCOM) | 2.64% | $175.29B | 17.45% | 55.77% | 4.34 |
| The TJX Cos., Inc. (TJX) | 2.09% | $138.32B | 3.95% | 30.60% | 2.65 |
| Lowe's Companies, Inc. (LOW) | 2.07% | $137.19B | -3.13% | 31.25% | 2.21 |
| Starbucks Corp. (SBUX) | 1.96% | $126.87B | -0.29% | 18.12% | 3.51 |
| Automatic Data Processing, Inc. (ADP) | 1.92% | $126.30B | 8.15% | 49.94% | 6.12 |
| Applied Materials, Inc. (AMAT) | 1.90% | $126.19B | 6.92% | 48.79% | N/A |
| Lam Research Corp. (LRCX) | 1.54% | $101.47B | 16.44% | 47.37% | 5.81 |
| Altria Group, Inc. (MO) | 1.45% | $94.59B | -0.28% | 87.20% | 5.46 |
| KLA Corp. (KLAC) | 1.45% | $95.12B | 24.09% | 60.25% | 8.00 |
| McKesson Corp. (MCK) | 1.24% | $80.16B | 17.80% | 3.38% | 0.24 |
| Fortinet, Inc. (FTNT) | 1.22% | $82.13B | 12.27% | 78.89% | 11.74 |
| O'Reilly Automotive, Inc. (ORLY) | 1.17% | $76.73B | 5.67% | 48.46% | 4.63 |
| Chipotle Mexican Grill, Inc. (CMG) | 1.11% | $72.65B | 14.61% | 23.71% | 7.61 |
| AutoZone, Inc. (AZO) | 0.91% | $59.68B | 2.41% | 53.86% | N/A |
| Paychex, Inc. (PAYX) | 0.83% | $54.77B | 4.69% | 71.21% | 9.77 |
| Fair Isaac Corp. (FICO) | 0.68% | $45.74B | 15.16% | 80.15% | 29.11 |
| Yum! Brands, Inc. (YUM) | 0.67% | $44.48B | 6.68% | 47.48% | 6.58 |
| Otis Worldwide Corp. (OTIS) | 0.61% | $40.19B | 0.37% | 30.14% | 3.08 |
| Old Dominion Freight Line, Inc. (ODFL) | 0.59% | $37.52B | -0.88% | 33.20% | 6.58 |
| IDEXX Laboratories, Inc. (IDXX) | 0.54% | $35.56B | 6.46% | 60.88% | 9.01 |
| HP, Inc. (HPQ) | 0.42% | $27.83B | 3.47% | 20.37% | N/A |
| Mettler-Toledo International, Inc. (MTD) | 0.40% | $26.31B | 2.22% | 58.17% | 7.27 |
| VeriSign, Inc. (VRSN) | 0.34% | $22.79B | 4.31% | 87.71% | 13.82 |
| NVR, Inc. (NVR) | 0.34% | $22.09B | 10.81% | 23.81% | 2.48 |
| Synchrony Financial (SYF) | 0.33% | $21.71B | 19.73% | 80.11% | 1.35 |
| Expeditors International of Washington, Inc. (EXPD) | 0.25% | $16.30B | 13.98% | 14.89% | 1.43 |
| Domino's Pizza, Inc. (DPZ) | 0.25% | $16.33B | 5.07% | 39.28% | 4.13 |
| Best Buy Co., Inc. (BBY) | 0.25% | $16.15B | -4.43% | 22.55% | 0.50 |
| Ulta Beauty, Inc. (ULTA) | 0.25% | $16.31B | 1.65% | 39.75% | 1.74 |
| Masco Corp. (MAS) | 0.24% | $15.60B | -1.74% | 36.25% | 2.39 |
| Moderna, Inc. (MRNA) | 0.21% | $13.58B | -52.69% | 48.92% | 2.99 |
| CF Industries Holdings, Inc. (CF) | 0.20% | $12.94B | -10.48% | 34.72% | 3.31 |
| Zions Bancorporation NA (ZION) | 0.11% | $7.58B | 7.91% | N/A | 2.49 |
| Bath & Body Works, Inc. (BBWI) | 0.11% | $7.50B | -1.64% | 44.26% | N/A |
| APA Corp. (APA) | 0.10% | $6.75B | 17.61% | 39.45% | 1.54 |
| Robert Half, Inc. (RHI) | 0.09% | $5.67B | -9.33% | 37.85% | 1.20 |
