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 September 29, 2023
| Apple, Inc. (AAPL) | 51.98% | $2,676.737B | -1.40% | 44.52% | 8.09x |
| Mastercard, Inc. (MA) | 7.14% | $370.116B | 14.21% | 96.94% | 16.18x |
| The Home Depot, Inc. (HD) | 5.99% | $302.180B | -2.00% | 31.47% | 2.45x |
| Texas Instruments Incorporated (TXN) | 2.85% | $144.376B | -13.07% | 64.22% | 8.85x |
| Lowe's Cos., Inc. (LOW) | 2.43% | $119.948B | -9.17% | 31.94% | 1.79x |
| QUALCOMM, Inc. (QCOM) | 2.43% | $123.943B | -22.72% | 55.13% | 3.48x |
| Applied Materials, Inc. (AMAT) | 2.34% | $115.818B | -1.09% | 46.28% | 4.82x |
| Starbucks Corp. (SBUX) | 2.04% | $104.541B | 12.51% | 23.16% | 3.85x |
| The TJX Cos., Inc. (TJX) | 1.99% | $101.686B | 7.73% | 30.04% | 2.12x |
| Automatic Data Processing, Inc. (ADP) | 1.94% | $99.112B | 8.48% | 48.88% | 5.14x |
| Lam Research Corp. (LRCX) | 1.69% | $82.873B | -30.54% | 45.78% | 4.69x |
| Altria Group, Inc. (MO) | 1.46% | $74.622B | 1.19% | 69.09% | 5.17x |
| KLA Corp. (KLAC) | 1.28% | $62.526B | -5.07% | 60.24% | 6.65x |
| McKesson Corp. (MCK) | 1.13% | $58.662B | 10.91% | 3.77% | 0.22x |
| O'Reilly Automotive, Inc. (ORLY) | 1.07% | $54.766B | 10.85% | 51.28% | 4.32x |
| Chipotle Mexican Grill, Inc. (CMG) | 0.99% | $50.536B | 13.62% | 24.34% | 6.67x |
| Fortinet, Inc. (FTNT) | 0.92% | $46.084B | 25.50% | 76.77% | 11.60x |
| AutoZone, Inc. (AZO) | 0.91% | $46.116B | 6.40% | 52.71% | 3.21x |
| Old Dominion Freight Line, Inc. (ODFL) | 0.86% | $44.706B | -15.25% | 34.05% | 6.85x |
| Paychex, Inc. (PAYX) | 0.83% | $41.661B | 7.45% | 69.93% | 7.44x |
| Moderna, Inc. (MRNA) | 0.75% | $39.311B | -92.71% | -138.66% | 3.70x |
| IDEXX Laboratories, Inc. (IDXX) | 0.72% | $36.299B | 9.65% | 60.72% | 12.29x |
| Yum! Brands, Inc. (YUM) | 0.70% | $35.010B | 3.12% | 50.50% | 7.34x |
| Otis Worldwide Corp. (OTIS) | 0.64% | $33.067B | 6.65% | 29.11% | 3.12x |
| HP, Inc. (HPQ) | 0.50% | $25.399B | -7.56% | 21.17% | 0.78x |
| Mettler-Toledo International, Inc. (MTD) | 0.46% | $24.228B | 0.38% | 57.58% | 7.85x |
| Fair Isaac Corp. (FICO) | 0.42% | $21.589B | 14.25% | 81.91% | 15.15x |
| VeriSign, Inc. (VRSN) | 0.40% | $20.888B | 5.71% | 86.48% | 16.65x |
| NVR, Inc. (NVR) | 0.38% | $19.466B | -13.42% | 24.67% | 2.07x |
| Ulta Beauty, Inc. (ULTA) | 0.38% | $19.664B | 10.13% | 39.28% | 2.21x |
| Expeditors International of Washington, Inc. (EXPD) | 0.33% | $16.953B | -51.34% | 16.81% | 1.36x |
| CF Industries Holdings, Inc. (CF) | 0.33% | $16.543B | -47.62% | 45.30% | 1.87x |
| Best Buy Co., Inc. (BBY) | 0.30% | $15.119B | -7.22% | 22.95% | 0.46x |
| Domino's Pizza, Inc. (DPZ) | 0.26% | $13.293B | -3.81% | 39.49% | 3.68x |
| APA Corp. (APA) | 0.25% | $12.629B | -41.06% | 43.82% | 1.86x |
| Synchrony Financial (SYF) | 0.25% | $12.784B | 33.39% | 80.55% | 1.10x |
| Masco Corp. (MAS) | 0.24% | $12.022B | -9.57% | 36.15% | 1.95x |
| Robert Half, Inc. (RHI) | 0.15% | $7.847B | -11.99% | 39.46% | 1.08x |
| Bath & Body Works, Inc. (BBWI) | 0.15% | $7.685B | -3.65% | 39.90% | 1.81x |
| Zions Bancorporation, NA (ZION) | 0.10% | $5.169B | 51.30% | N/A | 2.42x |
