TSLA - OEF: Strong Long-Term Performance Track Record Buy
2024-02-21 06:58:45 ET
Summary
- The iShares S&P 100 ETF consistently outperforms the broad market, represented by the Vanguard S&P 500 ETF.
- Ordinary investors often fail to achieve the total returns of the S&P 500 due to mistakes like trying to time the market or over-emphasizing one rigid investment strategy.
- The OEF ETF has a higher weight in IT and Communications services, while having lower weights in under-performing sectors like Industrials, Energy, and Utilities compared to the S&P 500.
- Today, I'll take a look at the OEF ETF to see if it is a good vehicle to outperform the S&P 500, or, if there is a better alternative for you.
The total returns of the iShares S&P 100 ETF ( OEF ) has consistently outperformed the broad market, as represented by the Vanguard S&P 500 ETF ( VOO ) - see the graphic below. That is probably not surprising to most investors given the well-publicized dominance of a handful of technology stocks that have been leaders throughout the bull-market and has recently pushed the S&P 500 to all-time record highs. That being the case, the OEF ETF has continued to outperform the broad S&P-500. Yet, as I have pointed out in my Seeking Alpha portfolio management articles, research indicates that the vast majority of ordinary investors (and even the majority of professional money managers ...) do not even achieve the total returns of the S&P 500 - let alone "beat the market". That being the case, today I'll take a closer look at the OEF ETF to see if it makes sense for you to allocate some of your capital to the OEF fund....
OEF: Strong Long-Term Performance Track Record, Buy