- 12.41% Year-to-Date
- 12.87% Trailing 1 Year Return
- 15.98% Annualized Return Since Inception
This week, Durig Capital recaps the recent performance of its own unique version of the Dogs of the Dow Strategy and benchmarks it to that of its closest peers. Also explored is the importance of portfolio correlation to the overall market, and how correlation can help to provide investors an idea of how a portfolio could theoretically perform under various market conditions.
Durig’s Dogs of the Dow – July Performance Highlights
12.87% Trailing 1 Year Return
15.98% Annualized Return Since Inception
Beta of 0.72 (vs. Benchmark*)
(Performance shown above is as of 7-31-19)
The historical returns of Durig’s Dogs of the Dow Portfolio are what truly set it apart from the rest of the pack. Always reported net of fees, the portfolio’s annualized return since its inception in June of 2017 comes in at a whopping 15.98%, outperforming each of its closest peers (SPDR Dow Jones Industrial Average ETF, S&P 500 Idx TR, Arrow Dow Jones Global Yield ETF) by at least 2.5% over the same return period considered.
The trailing one year return of Durig’s Dogs of the Dow Portfolio is also quite impressive, coming in at 12.87%, significantly surpassing the 7.99% trailing one year return of its nearest competition, the S&P 500 Idx TR.
In light of the recent market downturn of Q4 2018 the returns of Durig’s Portfolio appear to be very resilient under market pressure, but it is the portfolio’s low positive correlation to the market that helps it weather such market volatility, reducing the overall impact that can occur with portfolios more closely correlated to the overall market such as the S&P 500 which acts as a proxy to the movements of the overall market and maintains a beta of 1.0.
Durig’s Dogs of the Dow vs. Official Dogs of the Dow
The official Dogs of the Dow Investment Strategy was first introduced in the early 1990’s by Michael B. O’Higgins in the book “Beating the Dow”. Now, Durig’s unique Dogs of the Dow Portfolio once again looks to be outperforming the official Dogs of the Dow Investment Strategy, and year-to-date, has provided an excess return of +0.61% over and above the 11.8% YTD provided by the Official Dogs of the Dow Investment Strategy (below).
It is believed that this outperformance is due to the increased concentration among the top positions in Durig’s portfolio working in tandem with the strategic weighting of the top “Dogs” which may aid in consistently capturing the highest dividend yields contained in the Dow Jones Industrial Average (DJIA). If one is lacking exposure to equity investments, adding a Dogs of the Dow Portfolio could be effective in increasing overall portfolio diversification.
A key factor that allows Durig’s Dogs of the Dow Portfolio to weather significant bouts of market volatility, recently seen in Q4 of 2018 (right), is its very low positive correlation to the market as a whole (vs. S&P 500 TR Idx) . In up markets, the historical returns of Durig’s Dogs of the Dow Portfolio have been slower to rise, while in down markets the portfolio’s historical returns have been slower to fall than its peers.
For those with the goal of participating in the upside of equity markets but would like to limit their exposure to a significant downturns, Durig’s Dogs of the Dow Portfolio may provide a potential solution.
Low average cost + Higher Returns = Higher Net Returns to Clients
Discretion allows for active management of investments and enables proactive management
Segregated accounts; no pooled funding, so tax implications of the account match that of the investor
Investors may access their account online, allowing for 3rd party validation (TD Ameritrade offers comprehensive, 24/7 account access online to their custodial clients)
We leverage over 50 years of professional investment experience with an emphasis on personalized service
Getting Started with Durig’s Dogs of the Dow Portfolio
Minimum Investment of 25k
Discretionary Management only
Low Annual fee of 0.50%
No minimum investment period
Custodied at TD Ameritrade Institutional
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Disclaimer: Past performance is no indication of future success. Any performance shown is this publication is as of 7-31-2019. * The Primary Benchmark used is SPDR Dow Jones Industrial Average ETF. The high yield strategies presented in this review by Durig Capital may not be suitable for all investors. This is not investment advice from Durig Capital, nor a specific recommendation to buy or sell securities. If you have any questions or concerns about its suitability for your personal investment, you should seek specific investment advice from a registered professional before making an investment decision.