MADISON HEIGHTS, Mich., Feb. 11 — Through Jan. 30, the BetterInvesting Top 100 Index (BIXX) increased by 16.4 percent annually for the previous five years, versus 17.5 percent for the Standard & Poor’s 500 Equal-Weight Index (based on a total return for both indexes in which dividends are reinvested).
BIXX’s total return index stood at 323.15 at the end of January, versus 115.16 five years ago. Without dividends reinvested, the index was 254.55 at the end of January, up 14.1 percent from five years ago. The S&P 500 EWI without dividends reinvested, reached 3,155.97 on Jan. 30, a 14.9 percent gain over five years.
The BetterInvesting Top 100 Index comprises the most popular holdings of investment clubs, employing annual data from the myICLUB.com online club accounting program. Solactive calculates the index, which began on April 9, 2007, at a base value of 150. BIXX is equal-weighted, meaning that each component has a weighting of 1 percent.
BIXX reflects actual portfolio decisions by individual investors in investment clubs, while other indexes are weighted heavily toward decisions by large institutional investors. BetterInvesting’s individual members and investment clubs tend to have a longer-term focus than do institutions, with clubs’ average holding period for stocks at 3.0 years in 2014, according to myICLUB.com data.
Holding quality stocks selling at reasonable prices for the long term allows clubs and individual investors to benefit from the return these stocks often earn when the market recognizes their excellence. Long-term investing also reduces the costs of trading, which effectively increases return.
In January, the most common stocks acquired by investment clubs that subscribe to myICLUB, in terms of number of clubs buying, were:
1) Apple (AAPL)
2) Verizon (VZ)
3) General Electric (GE)
BIXX includes companies of all sizes, from small and medium-size firms to the world’s largest companies. To see the top 100 companies held by BetterInvesting members, go to the BetterInvesting website at www.betterinvesting.org.
To track the performance of BIXX, go to the Solactive site: www.solactive.com/?s=betterinvesting+100.
BetterInvesting is a national nonprofit organization that has been empowering individual investors since 1951. Founded in Detroit, the association (formerly known as National Association of Investors Corporation) was borne out of the conviction that anyone can become a successful long-term investor by following commonsense investing practices. BetterInvesting has helped more than 5 million people become better, more informed investors by providing webinars, in-person events, easy-to-use online tools for analyzing stocks and mutual funds, a monthly magazine and a community of volunteers and like-minded investors. For more information about BetterInvesting, visit its website at www.betterinvesting.org or call toll free (877) 275-6242.
ICLUBcentral, a for-profit subsidiary of BetterInvesting, develops quality tools for investors and investment clubs, including the myICLUB.com club accounting portal, StockCentral.com investing portal, MyStockProspector stock screening tool, EquityResearchService.com for advanced fundamental analysis, SmallCap Informer newsletter and market-beating Investor Advisory Service newsletter. For more information, visit www.iclub.com.