Post #753 by rayvt on the Mechanical Investing board

Investment Strategies / Mechanical Investing

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I bought, lrgf, mtum, and intf, which are multifactor and momentum funds, and I got crushed by the s and p.

Do this--go to some finance site and pull up the chart of VOO or SPY for the last 10 years, then add the top 10 stocks of the S&P500 to the chart. What you will see is that a few of those top 10 stocks shot to the moon, thereby pulling the S&P500 up up up.

If you didn't have a significant holding in those stocks, you would have fallen behind the S&P500. Those top 10 holdings are 30% of the S&P500.

https://finance.yahoo.com/chart/VOO#eyJpbnRlcnZhbC...

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