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About 2 years ago, DopplerValue listed 9 ETFs that "use the Buffett approach". Five of these are Dividend focused, and three are "Cash Cow" focused. What is "the Buffett approach"? http://www.datahelper.com/mi/search.phtml?nofool=y...

I plugged these 9 ETFs into Portfolio Visualizer and found an average Annual Alpha of 3.4% from June 2019 to December 2022 (time period was constrained by BUL). All 9 had positive Alpha. (Could just be luck, as none of the Alphas were statistically significant.)

Ticker  Rm-Rf   SMB   HML    MOM   Alpha  AnnualAlpha   R2                   Name
 COWZ   0.95   0.01   0.47  -0.10  0.59%      7.1%     92%         Pacer US Cash Cows 100 ETF
 SCHD   0.83   -0.18  0.31  -0.06  0.46%      5.5%     93%       Schwab US Dividend Equity ETF
 MOAT   0.87   -0.19  0.07  -0.31  0.32%      3.9%     96%     VanEck Morningstar Wide Moat ETF
 DGRW   0.85   -0.29  0.13  -0.02  0.29%      3.5%     94%   WisdomTree US Quality Dividend Gr ETF
 CALF   1.08   0.77   0.48  0.00   0.26%      3.1%     92%   Pacer US Small Cap Cash Cows 100 ETF
VDIGX   0.79   -0.39  0.09  -0.01  0.23%      2.8%     89%       Vanguard Dividend Growth Inv
PRDGX   0.86   -0.27  0.06  -0.02  0.16%      1.9%     96%       T. Rowe Price Dividend Growth
  BUL   1.12   0.15   0.08  0.11   0.11%      1.4%     94%       Pacer US Cash Cows Growth ETF
  SDY   0.79   -0.10  0.33  -0.12  0.11%      1.3%     94%           SPDR S&P Dividend ETF
BRK.B   0.92   -0.62  0.31  0.00   0.17%      2.0%     75%          Berkshire Hathaway Inc.
  RSP   0.97   -0.01  0.25  -0.11  0.09%      1.0%     98%     Invesco S&P 500 Equal Weight ETF
  SPY   0.98   -0.19  0.02  -0.02  0.07%      0.8%     100%          SPDR S&P 500 ETF Trust
  VTI   0.99   -0.04  0.02  -0.01  0.00%      0.0%     100%     Vanguard Total Stock Market ETF

For comparison, Portfolio Visualizer Four-Factor Model has results for 427 US Equity ETFs from Jan 2020 to Dec 2022: Annual Alpha ranges from 9% to -25% with a -0.5% median. 180 have Alpha>0.

SCHD Annual Alpha from Nov 2011 to Dec 2022 was 2.0%. Alpha was about 0% before 2021, and about 4% after 2021 (heteroscedasticity confirmed).

COWZ Annual Alpha from Jan 2017 to Dec 2022 was 4.7%. Alpha has been increasing since 2021.

A longer backtest of these 2 ETFs might be interesting. Is Alpha or Excess Return better for evaluating performance? I prefer Excess Return, but Alpha has its fans.

"Subtraction is essentially the same as regression except that β is always equal to one. If you actually look at the data, β often does not come close to one."
https://seekingalpha.com/article/4316293-why-alpha...

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