iQ Large Cap Growth Model
INVESTMENT OBJECTIVE
The iQuant.pro Large Cap Growth Model seeks to generate long-term returns in excess of the total return of the S&P 500 Barra Growth Index, with less down-market volatility than the index.
PROCESS
The Large-Cap Growth Model represents an equal-weighted portfolio of large and blue-chip stocks that have displayed strong earnings momentum, risk-adjusted price momentum and share buyback.
Start with the stocks of the S&P 500 Index
Select the 250 companies with the highest price-to-book ratio.
Sort by valuation versus earnings growth and select the top 200
Sort by earnings momentum and share buyback and select the top 40.
Sort by risk-adjusted price momentum and select the top 10.
This model reconstitutes every February, May, August and November
Why invest in large cap growth stocks?
Potential benefits of investing in large-cap growth stocks include:
Strong historical performance: Large-cap growth stocks have historically outperformed the broader market over the long term.
Established market leaders: Large-cap growth stocks are often well-established companies with established market positions and strong brand recognition.
Strong growth potential: Large-cap growth stocks often have strong revenue growth and earnings potential, which can translate into higher stock prices.
Diversification benefits: Investing in large-cap growth stocks can help diversify a portfolio, as they often come from different sectors and industries.
Investing in large-cap growth stocks involves exposure to companies with a history of strong earnings growth and market capitalizations that rank them among the largest publicly traded firms. These stocks have the potential for significant capital appreciation, but they also carry inherent risks. Market conditions, economic fluctuations, and changes in company performance can affect the value of large-cap growth stocks, leading to potential fluctuations in investment returns.