Finding Exchange Traded Funds (ETFs) which are able to find stocks which will perform well in the future, rather than those that have done well in the past, is the goal of any astute investor.
While historical data is often a very good predictor of future performance, any investor with experience will note exceptions to the rule.
Finding and predicting which companies will grow their dividend faster than their peers, for example, is one measure which has been looked at a number of different ways in the past.
Two new ETFs from Bristol Gate Capital Partners Inc. attempts to do just that – model which companies will outperform on the basis of dividend growth based on a number of factors which have been present in other companies which have raised their dividend at higher than average rates in the recent past.
This predictive model has performed very well, with the company’s Concentrated Canadian Equity ETF producing returns of more than 80% since 2013, beating the total return of the S&P/TSX index by more than 25% over this time frame.
The company also has a Concentrated US Equity ETF which has outperformed its benchmark by a similar margin.
Predictive ETFs are one of a few ETFs I will be looking at closer, given the impressive abilities AI and computer-run models have had in recent years.
Invest wisely, my friends.
