• This trading strategy with five stocks from those of ETF (XLK), mainly with a dividend yield greater than that of the S&P 500 index, produces much higher returns than XLK.
• The universe from which stocks are selected holds point-in-time, the S&P 500 technology stocks of FactSet’s Reverse Business Industry Classification System and some electronic payments industry stocks, similar to XLK.
• The model ranks the stocks of this custom universe with the Portfolio 123 “Greenblatt” ranking system and selects periodically the highest ranked stocks which also satisfy the stipulated yield requirement.
• From 1/2/2009 to 9/8/2020 this strategy would have produced an annualized return (CAGR) of 31.8%, significantly more than the 20.1% CAGR of XLK over this period.

The analysis was performed on the on-line portfolio simulation platform Portfolio 123.
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