STE's Stocks Investing Journey

image credit to trackinsight.com It has been quite sometimes I never update the performance of my “STE Smart Beta “ since the last one in Aug 2017 ( here ) .    You may also want to know what is “ Smart Beta “ ( here ), for those who are not so familiar with this investment / financial " jargon". Here is the latest update :

image credit to trackinsight.com Time flies, It has been more than a year after my first published of STE Smart Beta concept and bench-marking against STI Index. FYI, I have started my STE Smart Beta on 28th Aug 2016 with a capital of $100K with equal weighted investing in 14 stocks which fall under the criteria of PE<10 or Dividend Yield >5% . You may find the detail in this link ( here ).

image credit to trackinsight.com It has been quite sometimes since my last update of STE Smart Beta Index which was created on 28 Aug 2016 ( here ) and Yah !! Just for Fun  J STE SM Index beat the STI Index by just 2 % points and if take into consideration of dividend yield where it has been set higher than STI by around 1.5%, a total return could be around 3.5 %.  I will need to do the portfolio rebalancing in Aug 2017 after 1 year of inception and I think since the market has been very bullish recently, it has become very difficult to find counters which have PE <10 or Div Yield >5% among STI's components . Base on my observation, the total counter should drop to eight only as per current stocks price and market valuation.

Hi  All, As written before, I will try to update the STE Smart Beta Index on a quarterly basis and re-balance the portfolio on a yearly basis. Append below, please find the latest update : The index just slightly outperformed the STI Index by merely  0.8%  since 28 Aug 2016, a one-quarter result may not reflect the long term trend, we may need to see this in longer time horizon to gauge the performance if there are any " smart factors " in this kind of criteria selection.

When Alpha Becomes Beta What is Alpha? The concept explains: ( From Investopedia ) As a measure of   performance   on a risk-adjusted basis. Alpha, often considered the   active return on an investment, gauges the performance of an investment against a   market index   used as a   benchmark since they are often considered to represent the   market’s   movement as a whole. The   excess returns   of a fund   relative to the   return   of a benchmark   index are the fund's alpha.