Index Evidence BetterInvesting Members Learn How to Invest Successfully
BetterInvesting members identify stocks for long-term growth
January 11, 2022- The National Association of Investors is proud to report that the BetterInvesting 100 Total Return Index (BIXR), reflecting the portfolios of everyday Americans, i.e., Main Street investors, finished 2021 with a five-year annualized return of 18.21%, besting the S&P 500 Equal-Weight Total Return Index by over two percentage points (15.73%) for the same period.The BetterInvesting 100 is comprised of the stock from the 100 companies most widely held by NAIC/BetterInvesting members. Each April BetterInvesting Magazine highlights the top 100 stocks held in investment club portfolios as of the close of the previous calendar year, utilizing annual data from the myICLUB.com online club accounting program. The list serves as the basis of the BetterInvesting 100 Index (BIXX), as well as the BetterInvesting 100 Total Return Index (BIXR). BIXX and BIXR are both equal-weighted, resulting in each component representing the same percentage in the index.
Aligning with BetterInvesting principle #2 (reinvest all dividends and earnings to leverage compounding) and in conjunction with the fact that dividend payouts can provide a substantial portion of a stock’s total return, the organization focuses primarily on BIXR, the BetterInvesting 100 Total Return Index.
BIXR reflects actual portfolio decisions made by individual investors in investment clubs, while other indexes are weighted heavily toward decisions by large institutional investors. BetterInvesting’s individual members and investment clubs generally have a longer-term focus than do institutions, with the average holding period for stocks being more than three years. Holding high quality stocks selling at reasonable prices for the long term allows clubs and individual investors to benefit from the return these stocks often earn when the market recognizes their excellence.
Looking long term, for the previous 10 years the annual return for the BetterInvesting 100 was 16.23%, compared with 15.64% annual growth for the S&P 500 Equal-Weight Index (based on a total return for both indexes in which dividends are reinvested).
Independent firm Solactive, an international provider of financial indices, maintains and tracks the data for both BIXX and BIXR. View the BetterInvesting 100 Total Return Index (BIXR) at:
BIXR includes companies of all sizes, from small and medium-size firms like Zoetis (ZTS) to the world’s largest companies like Proctor & Gamble Company (PG). To see the top 100 companies, including Apple (AAPL), go to the BetterInvesting website at www.betterinvesting.org.
BetterInvesting – Where Wall Street and Main Street Meet.