Keep pulling the thread on Rob Arnott.
A backtest of the Research Affiliates Growth Index strategy showed it would have outperformed the Russell Growth index by 4.5% per year over the last 30 years.
Since its launch on Bloomberg in March 2023, the Research Affiliates Growth Index has outperformed the Russell Growth index by 13 percentage points.
NVIDIA has singularly accounted for 10% of the aggregate sales or profit growth in the entire US economy.
Apple has accounted for 10% of the aggregate growth in sales or profits of the US economy.
The investment capacity for a strategy based on the Research Affiliates Growth Index is estimated to be between $1.5 trillion and $3 trillion.
Research Affiliates has created a new index called the Research Affiliates Growth Index, which is distinct from both cap-weighted and equal-weight ETFs.
The Research Affiliates Growth Index is currently being tracked live but is not yet available as an investable product.
The Research Affiliates Growth Index selects companies that are in the top 25% based on an average of their growth rates in sales, profits, and R&D spending.
Apple does not meet the growth criteria for inclusion in the Research Affiliates Growth Index.
Amazon and Microsoft are not growing fast enough to be included in the Research Affiliates Growth Index.
The two largest holdings in the Research Affiliates Growth Index are NVIDIA and Apple.
NVIDIA and Apple each have a weight of a little over 10% in the Research Affiliates Growth Index.