Modeling the Performance of Information Technology Stocks over the Period 2006-2016: A Case Study in Fundamentals Portfolio Weighting
Sallie R Deyoung
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).
Independent Research - Undergraduate
Trevor C Collier
Primary Advisor's Department
Economics and Finance
Stander Symposium poster
"Modeling the Performance of Information Technology Stocks over the Period 2006-2016: A Case Study in Fundamentals Portfolio Weighting" (2017). Stander Symposium Posters. 886.