USCF Advisers has listed a new exchange-traded fund, the Stock Split Index Fund, on the New York Stock Exchange (NYSE).
The fund allows investors to access a portfolio of companies whose stocks have recently split, in an easy-to-trade ETF, and is based on the 2 for 1 Index.
The index is based on a model portfolio of the stocks of companies that have recently split, as published each month in the “2 for 1 Newsletter”. The “2 for 1 Newsletter” is an investment newsletter that publishes research and analysis, including a model portfolio, and has been published monthly since 1996.
“We’re pleased to launch this new fund, which is based on an index with well-established research”, says John Hyland, chief investment officer of USCF Advisers. “The 2 for 1 Index idea is that a stock that splits may outperform expectations for a period of time. Investors and investment professionals have both been taught that stock splits really shouldn’t impact a stock’s performance, but there has been a lot of material published that demonstrates that stock splits, do in fact, matter. This new ETF gives investors an easy way to access these companies in a convenient, low-cost way.”
The 2 for 1 Index contains approximately 30 companies which trade on major US stock exchanges. Companies eligible for inclusion in the index have all announced a 2 for 1 (or higher) stock split within the six months prior to selection for the index. Each month, the 2 for 1 Index is updated on the Friday closest to the 15th of that month. The pool of eligible companies is evaluated and ranked according to a proprietary methodology, and the top ranked choice is selected for the Index. One new stock is added to the index, and the oldest stock is removed. All positions are then rebalanced to equal weight.