MintKit Growth Index – Final Report

A Lean Benchmark of the Stock Marketfor Spry Growth at Modest Risk 
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A pool of lively stocks based on equal weighting can beat the top benchmark of the bourse at modest risk over a representative window that covers a full cycle of boom and bust. Moreover, the setup requires a minim of time and effort; to wit, culling a dozen stocks or less in a single session lasting a couple of hours each year.

The lean strategy was tracked by the MintKit Growth Index (MGX). Since the streamlined method applies to portfolios both large and small, it befits a personal account as much as a large vessel such as a mutual fund or a pension fund. In particular, the lithe approach suits a busy investor who can devote only a dollop of time and effort to minding their portfolio.

The case study ran for half a decade starting in 2018. During this stretch, the representative window on the market spanned four years ending in 2021. Over that timespan, the sparky lodestar eclipsed the top benchmark of the bourse; namely, the S&P 500 Index (SPX). More precisely, the MGX gained 18.4% per year on average as opposed to 15.5% for the SPX over the same period.

In short, the study affirmed the merits of a combo of equal weighting, deft selection, and light handling of a lean portfolio. Simply put, a demure but mindful approach to tending spry stocks using equal weights can outpace the SPX. Moreover, the superior performance may be attained at modest risk by devoting only a couple of hours in a single session each year.

 

Note

The full review is titled “MintKit Growth Index – Final Report”. The document may be downloaded in PDF mode at MintKit Gist or Internet Archive.

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MintKit Growth Index – Update 2022

 

A Benchmark for Spry Growth at Modest Risk

The coronavirus plague that ravaged the global economy in 2020 continued to linger in diminished form during the past year. On the upside, though, the real economy as well as the stock market trudged ahead without any major problems. 

After thrashing around during the spring and autumn, the bourse reached all-time highs by the end of 2021. As a result, the flagship benchmark – namely, the S&P 500 Index (SPX) – rose by 26.9% from the previous year. 

When the stock market forges ahead, high-growth stocks tend to outrun their plodding peers. On the glum side, though, high-flying firms in China broke down en masse this year. Among them was Alibaba – a component of the MintKit Growth Index (MGX) – which plunged by 49%. Other washouts in the Index included a couple of mining firms, each of which lost around one-quarter of its value. As a result, the benchmark advanced by just 13.2% during the year.

From a broader stance, however, the MGX still managed to outpace the SPX. To wit, the Growth Index gained 18.4% per year on average since its debut, as opposed to 15.5% for the S&P yardstick over the same stretch.

From a different angle, the MGX upon its launch was set to unity (1); that is, 100 percentage points. Given this baseline, the Index reached 196.6695 points at the end of last year.

Looking downstream, the outlook for 2022 is roughly comparable to the previous year’s. The real economy will continue to recover from the drubbing dealt by the pandemic. In that case, the stock market should tramp higher as well.

As usual, the revised roster for MGX takes a moderately aggressive approach. To wit, the goal for the new year centers on ample growth at modest risk rather than huge potential at great peril.

On a fulfilling note, this will be the fifth and last year of the current experiment that began in 2018. That is, the project to maintain and appraise the MGX will conclude at the end of 2022.

On the other hand, the basic methodology behind the Growth Index will prevail for the foreseeable future. An example involves an expansion of the screening procedure to include option contracts as well as common stocks, or a variation among the weights assigned to the members of the Index. In these and other ways, the studies downrange will break free of a number of artificial fetters imposed on MGX during the current experiment.

NOTE:  The report is a slide presentation under the title of “MintKit Growth Index – Update 2022”. The briefing is available in PDF mode at the Internet Archive.

 

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MintKit Growth Index – Update 2021

 

A Benchmark for Spry Growth at Modest Risk

 

It has been a rough year for everyone as the coronavirus pandemic roiled the real and financial markets. One nasty blow was the crash of the stock market in the spring. Luckily, though, the bourse rebounded promptly and set a new record by the end of the summer. 

After thrashing around in the autumn, the market again scaled an all-time peak by the end of the year. As a result, the flagship benchmark – namely, the S&P 500 Index – rose by some 16% over the previous year. 

When the stock market forges ahead, high-growth stocks tend to outrun their plodding peers. In keeping with the norm, the MintKit Growth Index (MGX) climbed by nearly 48% over the same timespan.

From a larger stance, the MGX upon its launch was set to unity (1); that is, 100 percentage points. From this baseline, the Index reached 173.6965 points at the end of last year.

Looking downstream, the outlook for 2021 is much brighter compared to the gloom of the past year. For one thing, the real economy will recover in stages from the drubbing caused by the pandemic. In that case, the stock market will continue to climb higher.

From a different slant, the politicians whipped up trillions of dollars out of thin air in a frantic effort to stimulate the economy in the throes of the pandemic. One fallout downrange is a swelling fear of inflation which will drive a growing throng of investors into the arms of precious metals such as gold. In that case, the mining industry will fare better than most of its peers in the near future and for many years to come. 

Against this backdrop, the revised roster for MGX takes a moderately aggressive approach to the stock market. Even so, the goal for the coming year centers on zesty growth with ample stability rather than lusty vigor with stellar potential.

NOTE:  The publication is a slide presentation under the title of “MintKit Growth Index – Update 2021”. The report is available in PDF mode at the Internet Archive. 

 

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MintKit Growth Index – Update 2020

A Benchmark for Spry Growth at Modest Risk

After enduring a crash in late 2018, the stock market scrambled higher over the past year. Despite a few fallbacks along the way, the bourse racked up hefty gains in the end. In particular, the flagship benchmark—namely, the S&P 500 Index (SPX)—rose by 28.9% during 2019.

When the stock market forges ahead, high-growth stocks tend to surpass their plodding peers. In keeping with the norm, the MintKit Growth Index (MGX) climbed by 33.5%.

From a larger stance, the MGX upon its launch was set to unity (1); that is, 100 percentage points. Starting from this baseline, the Index reached 117.6893 points at the end of last year.

Looking downstream, the outlook for 2020 is humdrum compared to the slant over the past year. The main damper lies in the prospect of a recession in the U.S. by 2021. Given the frailty of the economy, the stock market is slated to flail around a lot more than press ahead. In that case, the bourse will at best chalk up a modest return over the year to come.

In this tepid environment, it seems prudent to seek stable growth rather than zippy gains going forward. For this reason, the revised roster for MGX takes a somewhat conservative approach much like the tack taken in 2019. To sum up, the goal for the coming year centers on sturdy growth with ample stability rather than lusty vigor with stellar potential.


NOTE:  The report is a slide presentation under the title of “MintKit Growth Index – Update 2020”. The file is available in PDF form at SlideShare.

 

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MintKit Growth Index – 2019 Update

A Benchmark for Spry Growth at Modest Risk

The stock market thrashed around a great deal in 2018. The initial flap involved an upsurge that began around the end of the previous year. The upthrow soon gave way a smackdown within a few weeks.

Following an upward trudge during the spring and summer, the market lurched lower in the autumn. As a finale, the bourse sustained a jarring crash in December: a rare event for this time of year.

When the stock market flounders, high-growth stocks tend to thrash around more than their plodding peers. Not surprisingly, the MintKit Growth Index (MGX) fared worse than the stock market as a whole.

We may reckon the initial value of the Index upon its launch as unity (1); that is, 100 percentage points. In that case, the newfound level of MGX at the onset of 2019 comes out to 88.1746 points.

Since the Index fell by some 11.8% last year, it fared worse than the SPX which lost 6.2% over the same stretch. That much was to be expected given the heightened sensitivity of high-growth stocks to the movements of the stock market at large.

Looking downstream, the prospects for 2019 are not much better than last year's. In particular, the market is slated to soar and dive a couple of times during the year.

In that case, it seems prudent to favor stable growth rather than zippy gains over the year to come. For this reason, the revised roster for MGX takes a slightly conservative approach by seeking sturdy growth with ample stability rather than sparkling pep with lofty potential.


NOTE:  The report is a slide presentation under the title of “MintKit Growth Index – Update”. The file is available in PDF form at SlideShare.

 

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Rewards of Investing in Real Estate through Index Funds, Not Actual Properties

Higher Payoff with Less Effort

Real estate represents the greatest store of wealth for the bulk of the human population. With the exception of owning a home for personal use, however, holding a property for the purpose of investment usually entails a raft of headaches. The nettlers of this kind run the gamut from emergency repairs and maintenance costs to problematic tenants and sporadic vacancies. As a result, the net earnings usually fall a goodly amount below the gross returns reckoned in terms of the monthly rent.

On the upside, though, holding an index fund in the financial forum tends to pose far less headaches than renting out actual dwellings in the real economy. Granted, the experience of any given person could differ from that of another. Even so, many an investor enjoys a higher rate of return through an index fund for real estate than the mass of landlords can eke out by renting out actual properties in the marketplace.


NOTE: The briefing is available under the following title: “Rewards of Investing in Real Estate through Index Funds, Not Actual Properties”. The PDF document may be downloaded from MintKit Library. In addition, a capsule in the form of an infographic poster is available at MintKit Gist.

 

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Top ETFs for the Frontier Markets of Turkey, Thailand and South Africa

 Review of TUR, THD and EZA as 

 the Best Exchange Traded Funds 

 for Frontier Markets 

 During and After the Financial Crisis 

The top vehicles for growth include the exchange traded funds (ETFs) for the frontier markets of Thailand, Turkey and South Africa. The time frame for evaluation covers a crucial stretch of three years spanning the financial crisis of 2008 and its aftermath. In sizing up the performance of the funds, the key factors include the return on investment, the volatility of the pool, and the cost of maintenance.

As a rule, the vital features are interlinked rather than independent. As an example, a vehicle on the fast track to growth is prone to be more flighty than a sluggish one which plods along at a modest pace. Another sample lies in the cost structure: an index fund with a heavy burden of maintenance fees is prone to lag behind its rivals that have leaner structures.

In sizing up the index funds, a straightforward scheme is to begin with a list of the high flyers. Then the other factors such as risk and cost can be brought to bear on the appraisal.

For the tally at hand, the total return – consisting of the capital gain and dividend yield – covered a stretch of three years ending in March 2011. By this reckoning, the index fund for Turkey earned the gold medal.

Meanwhile, the pool for South Africa turned in a solid return coupled with a lower level of volatility. As a result, the African fund won the trophy for risk-adjusted returns.

In sizing up the efficiency of operations, the funds for Turkey and South Africa boasted a slim advantage over the pool for Thailand. On the other hand, the difference in maintenance fees was too small to have much of an impact on the rankings.

Read more on Top ETFs for the Frontier Markets of Turkey, Thailand and South Africa.

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Top 10 ETF List for Growth – Performance, Risk and Cost

In order to pick out a promising exchange traded fund (ETF) in an orderly way, the first task of the investor is to compile a list of the top performers. For this purpose, the crucial factors include the pace of capital gains, the level of price volatility, and the burden of maintenance charges.

In certain cases, additional features may come to the fore. A case in point is the yield due to the dividends thrown off by the ETF.

For the most part, the traits noted above are interlinked rather than independent. As an example, an exchange traded fund on a growth streak is apt to be more volatile than a sluggish one which plods along at a modest pace. Another sample is the cost structure; whatever the performance in the past, an index fund with a heavy load is more likely than not in the future to lag behind its rivals with leaner structures.

In tackling these issues, a sensible step is to begin with a muster of the top 10 funds by way of growth. Then the other factors such as risk and cost can be brought to bear on the evaluation.

Read more on Top 10 ETF List for Growth – Performance, Risk and Cost.

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