Tuesday, November 23, 2010

Net Payout Yields Model Live on Covestor

The second of three models is now live on Covestor.com. The second model is the Net Payout Yields portfolio that focuses on SP500 stocks with large net payout yields which are the combination of dividends and stock buybacks. Companies with the highest yields have historically outperformed the market by a large percentage with no additional risk then investing in an SP500 index fund.

This model requires a $5,000 investment and charges 1.1% pa. Also, in order to sign up with Covestor it requires $10,000 to establish an account via Interactive Brokers. Then your able to diversify that $10K with multiple models via the $5K investment or just one model. So even with only $10K you can have 2 models replicated. Great opportunity to diversify.

For more information on Net Payout Yields please see the article I wrote a few years back The Advantage of Net Payout Yields. Also, see the virtual portfolio I've been tracking at Marketocracy.com over the last 2+ years for practical history of how it's performed. When assuming the 1.1% expense versus the 2%+ used on that site, the model has beaten the SP500 by over 5% per year. This model beat 83% of the portfolios on Marketocracy over the last 2 years even though its not designed for high performance.

It's a great model for retirement money since its relatively low risk and cost efficient. More importantly though it has a history of outperforming the market. Future results can not be guaranteed and this will be the first time the model has utilized real trading versus a simulated or virtual portfolio. For more information on how to sign up, please contact Coverstor.

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