Trustworthy Companies Offer Superior Investment Returns with Less Risk
This June Trust Across America-Trust Around the World (TAA-TAW) retained Index One, a global back testing and index creation firm based in London to evaluate our FACTS® Framework (ten year historical results) versus major US indexes.”
The results are as follows with annual rebalancing:
The top 50 FACTS® companies outperformed IWD (iShares Russell 1000 Value ETF) by 47% (15.46% vs.10.51% ).
The top 100 FACTS® companies outperformed IWD by 52.9%, 16.07% vs. 10.51% for IWD
Index One also performed the same analysis using the SPDR S&P 500 (SPY) ETF. 16.07% (50 companies) and 15.46% (100 companies) respectively vs. 15.27% for SPY.
(Alpha, Beta, Treynor Ratio, Upside and Downside Capture ratios produced excellent results)
Methodology: Ten years ago Trust Across America-Trust Around the World (TAA-TAW) constructed a model to evaluate the trustworthiness of public companies, incorporating quantifiable metrics and data and named it the FACTS® Framework, an acronym that includes five drivers or indicators of trustworthy business behavior. They are:
- Financial stability
- Accounting conservativeness
- Corporate governance
