US Growth Portfolio: About

1 Nov 2021
How does US Growth Work?

Capital Appreciation Combining Two Premium Strategies

Designed for investors with an interest in US markets and who are mostly looking for returns via capital appreciation rather than dividend income, with the benefit of expert analysis.

US Growth is a 14-stock strategy that combines systematic technical and fundamental analysis. It combines two of our popular US strategies; US Value and US Momentum, giving you the benefit of both strategies.


Need to Know

Goal Market Risk Combines Re-balance Horizon Minimum Suggest Investment
Growth via capital appreciation US High US Value & US Momentum Monthly Multi-year $10000 (model uses $5000 per stock)


Why Follow US Growth?

With US Growth, you get the combination of two of our popular systematic strategies; US Value which uses fundamental factors, and US Momentum which uses technical factors. We hold the top-ranked seven stocks from each strategy, giving you the benefit of both.

We developed this strategy to make it easier for investors wanting to use US Value and US Momentum together as a growth strategy with a similar return profile but lower short-term volatility than the individual strategies.


How do I Follow US Growth?

We’ve designed this strategy to be easy to follow with these steps:

  1. Buy: Buy the stocks in the table in equal weights. Weights can drift over time as stock prices move, but we will only recommend re-balancing stock weights if they stray too far from the target weight. The stock volumes are based on a $5,000 investment per stock.
  2. Re-balancing: When you subscribe to this strategy, you will receive the re-balancing notification once a month which provides an updated list of stocks. You sell any stocks that are no longer on the list. After these stocks are sold, the new stocks from the current table can be bought.

US Growth Benefits from Two Premium Strategies
US Momentum

Based purely on the performance of the stock’s share price. We take advantage of the “momentum effect” by buying the top 10 momentum stocks which are a member of either the S&P100 or the Nasdaq100.

US Value

This strategy sources a pool of large-capitalization US stocks based on two key financial metrics; Return on Capital Employed (ROCE), and Earnings Sustainability. The final strategy is generated by ranking on dividend yield. The lower the yield, the higher the ranking.


Important Notice:

Please note that this article contains back-tested data which shows how the model would have performed using historical data. “Backtest” results are neither an indicator nor a guarantee of future returns.

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