Presenter(s)

Sallie R Deyoung

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Description

A growing number of investment firms are using fundamentals based weighting for the stocks in their mutual funds or Exchange Traded Funds (ETF’s). In this study, I use the profitability metric, Return on Equity (ROE), as my stock weighting factor and model the returns to stocks in the Information Technology Sector ETF (XLK). I also use a concentrated portfolio approach with two portfolios: 10 stocks and 20 stocks as my test prototypes. I test two hypotheses: (1) The ROE weighted Portfolios will outperform XLK and (2) the ROE weighted portfolio will outperform the S&P 500 Index (SPY).

Publication Date

4-5-2017

Project Designation

Independent Research - Undergraduate

Primary Advisor

Trevor C. Collier

Primary Advisor's Department

Economics and Finance

Keywords

Stander Symposium project

Modeling the Performance of Information Technology Stocks over the Period 2006-2016: A Case Study in Fundamentals Portfolio Weighting

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