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 April 7, 2026
| Apple, Inc. (AAPL) | 53.23% | $3.72T | 15.65% | 48.16% | 9.35 |
| Mastercard, Inc. (MA) | 6.31% | $444.37B | 16.61% | 96.03% | 16.00 |
| The Home Depot, Inc. (HD) | 4.57% | $317.50B | 3.24% | 31.33% | 2.65 |
| Applied Materials, Inc. (AMAT) | 4.02% | $281.18B | -2.15% | 48.99% | 9.08 |
| Lam Research Corp. (LRCX) | 4.01% | $280.16B | 22.14% | 49.60% | 10.85 |
| KLA Corp. (KLAC) | 2.90% | $203.02B | 7.12% | 59.62% | 12.66 |
| Texas Instruments Incorporated (TXN) | 2.60% | $181.85B | 13.05% | 57.02% | 9.52 |
| The TJX Cos., Inc. (TJX) | 2.49% | $174.41B | 7.12% | 31.10% | 2.92 |
| QUALCOMM, Inc. (QCOM) | 1.91% | $132.38B | 5.00% | 54.55% | 4.27 |
| Lowe's Companies, Inc. (LOW) | 1.86% | $129.72B | 3.12% | 31.23% | 2.24 |
| Altria Group, Inc. (MO) | 1.58% | $110.76B | -1.60% | 87.01% | 5.88 |
| Starbucks Corp. (SBUX) | 1.55% | $108.47B | 5.53% | 15.63% | 3.16 |
| McKesson Corp. (MCK) | 1.50% | $104.93B | 11.40% | 3.28% | 0.27 |
| Automatic Data Processing, Inc. (ADP) | 1.18% | $82.28B | 6.16% | 50.47% | 5.00 |
| O'Reilly Automotive, Inc. (ORLY) | 1.10% | $76.60B | 6.42% | 48.75% | 4.86 |
| Fortinet, Inc. (FTNT) | 0.89% | $61.95B | 14.17% | 80.46% | 8.56 |
| AutoZone, Inc. (AZO) | 0.80% | $55.81B | 8.15% | 52.49% | 3.96 |
| IDEXX Laboratories, Inc. (IDXX) | 0.65% | $45.77B | 10.42% | 61.82% | 12.92 |
| Yum! Brands, Inc. (YUM) | 0.62% | $43.38B | 8.81% | 46.17% | 6.67 |
| Chipotle Mexican Grill, Inc. (CMG) | 0.62% | $43.06B | 5.41% | 22.35% | 4.50 |
| Old Dominion Freight Line, Inc. (ODFL) | 0.59% | $41.46B | -5.48% | 31.67% | 6.04 |
| Paychex, Inc. (PAYX) | 0.47% | $32.82B | 19.87% | 72.82% | 5.82 |
| Otis Worldwide Corp. (OTIS) | 0.43% | $30.25B | 1.19% | 30.55% | 2.91 |
| Mettler-Toledo International, Inc. (MTD) | 0.37% | $25.81B | 3.98% | 57.52% | 7.70 |
| Fair Isaac Corp. (FICO) | 0.37% | $25.67B | 16.36% | 82.96% | 21.11 |
| VeriSign, Inc. (VRSN) | 0.36% | $25.19B | 6.37% | 88.15% | 14.49 |
| Synchrony Financial (SYF) | 0.34% | $23.93B | -7.91% | 80.68% | 1.71 |
| Ulta Beauty, Inc. (ULTA) | 0.34% | $23.28B | 9.71% | 39.10% | 2.49 |
| CF Industries Holdings, Inc. (CF) | 0.29% | $20.55B | 19.34% | 38.54% | 2.42 |
| Moderna, Inc. (MRNA) | 0.28% | $19.79B | -39.93% | 44.29% | 3.59 |
| Expeditors International of Washington, Inc. (EXPD) | 0.28% | $19.30B | 4.42% | 15.56% | 1.77 |
| NVR, Inc. (NVR) | 0.26% | $18.66B | -2.00% | 21.24% | 2.13 |
| HP, Inc. (HPQ) | 0.25% | $17.02B | 7.46% | 19.34% | 0.46 |
| APA Corp. (APA) | 0.22% | $15.18B | -8.39% | 37.32% | 1.57 |
| Best Buy Co., Inc. (BBY) | 0.19% | $13.39B | 0.39% | 22.45% | 0.38 |
| Domino's Pizza, Inc. (DPZ) | 0.18% | $12.38B | 4.96% | 39.15% | 3.88 |
| Masco Corp. (MAS) | 0.17% | $12.03B | -3.40% | 35.53% | 2.14 |
| Zions Bancorporation NA (ZION) | 0.12% | $8.74B | -1.00% | N/A | 2.60 |
| Bath & Body Works, Inc. (BBWI) | 0.05% | $3.64B | -0.22% | 43.78% | 1.17 |
| Robert Half, Inc. (RHI) | 0.03% | $2.43B | -7.20% | 35.75% | 0.47 |