ViFinance US Stocks vs Quality ETFs
We recently received a question about 'why choose individual quality companies and create your own index when there are ready-made Quality ETFs' that include companies selected precisely based on quality criteria.
I decided to compare them with our ViFinance US Stocks Index, which includes only quality companies, and the S&P 500 index, for the period of our index's existence (from April 1, 2017, to June 30, 2023 - note update date).
Here are the results:
I decided to compare them with our ViFinance US Stocks Index, which includes only quality companies, and the S&P 500 index, for the period of our index's existence (from April 1, 2017, to June 30, 2023 - note update date).
Here are the results:
Each fund has its own 'quality criteria' and methodology for allocating proportions, but in terms of returns, a significant portion of Quality ETFs lag behind the simple S&P 500 index.
For us, it's evident that outperforming our ViFinance US Stocks by more than one and a half times its benchmark (the S&P 500 Index), with approximately similar levels of risk, is unquestionably worth the effort.
Collectively, these funds currently hold nearly $37.4 billion. Investors pay over $56.5 million annually for their management.
For us, it's evident that outperforming our ViFinance US Stocks by more than one and a half times its benchmark (the S&P 500 Index), with approximately similar levels of risk, is unquestionably worth the effort.
Collectively, these funds currently hold nearly $37.4 billion. Investors pay over $56.5 million annually for their management.