Income Diversification & Blue Chip Performance with Less Historical Volatility than the S&P 500
A simple way to diversify your portfolio. Giving you Blue Chip Growth and Income.Durig Capital has created its own version of the well known and established Dogs of the Dow Investment Strategy but has taken a specialized approach entirely built around the S&P 500. Historically, this unique strategy has outperformed most income producing investments with less historical volatility than even the S&P 500 while still providing a handsome level of dividend income, allowing for increased income diversification. We also strive to achieve increased tax-efficiency in the portfolio.
Durig’s Dogs of the S&P 500 Portfolio Strategy could potentially offer a solution for those looking to put money into a Dogs of the Dow Portfolio or similar strategy, but do not have the experience, time, or want to maintain a current portfolio. Durig’s very low management cost and high level of professional service combined with a strong track record of performance that contains less historical volatility than the S&P 500 have allowed us to provide higher net returns to our clients over time.
Having various streams of income flowing from investments helps to maintain consistent and/or growing incomes over time. Fixed Income / Bonds / Notes are a very commonly used for producing income, but many others are often overlooked. Adding high levels of dividend income to the mix not only reduces inconsistencies in income levels, but also helps to minimize the risk of loss as investments do not always perform as expected. Additionally, Durig’s Dogs of the S&P 500 contain blue chip stocks that span many different industries, so both income diversification and overall diversification may be improved by adding a Dogs of the S&P Portfolio to an investment portfolio.
Blue Chip Performance with Less Historical Volatility
The historical returns of Durig’s Dogs of the S&P Portfolio contain far less historical volatility than the S&P 500, or even the Dow Jones Industrial Average. This is due to Durig’s Dogs of the S&P having only a weak positive correlation to market indices such as the S&P 500 or the Dow Jones. For example, in the market downturn of Q4 2018 (See Below), Durig’s Dogs of the S&P’s performance fell by much less than both the S&P 500 and Dow Jones Industrial Average over the same period. The inverse is also generally true; in up markets Durig’s performance rises somewhat slower than stock market indices do.
(lifetime performance is reported net of fee, as of 1-31-20)
Correlation of Durig’s Dogs of the S&P 500 to Stock Market Indices
Durig’s Dogs of the S&P Portfolio’s weak correlation to stock market indices act as a form of insulation from market volatility. Beta is an asset’s correlation to the overall market and is a measure of asset volatility relative to the market. A beta above 1.0 means that an asset or portfolio’s price is hypothetically more volatile than the market. For example, a portfolio with a beta is 1.5 is expected to have 50% more volatile than the market, which has a beta of 1.0 when taken as a whole.
A low positive beta or weak positive correlation to the overall market, such as the beta of Durig’s Dogs of the S&P 500 can almost be thought of as smoothing out the ups and downs for a less bumpy and more enjoyable ride over time.
(As of 1-31-20)
Dogs of the S&P 500
Annual Cost: 0.50% or 1/8 of a percent per quarter.
Average Dividend Yield of About: 4.50%
Minimum Investment: $25,000
Minimum Holding Period: None