iMarketSignals | Page 54

This 5-stock trading strategy with the Industrial Sector stocks of the S&P 500 produces much higher returns than the Industrial Select Sector SPDR Fund (XLI).
The universe from which stocks are selected holds point-in-time the S&P 500 industrial stocks of FactSet’s Reverse Business Industry Classification System.
The model ranks the stocks of this custom universe with the Portfolio123 “Greenblatt” ranking system and selects periodically the highest ranked stocks which also satisfy stipulated yield requirements.
From 1/2/2009 to 10/2/2020 this strategy would have produced an annualized return (CAGR) of 20.6%, significantly more than the 12.7% CAGR of XLI over this period.