TipRanks is pleased to announce the launch of two indexes based on TipRanks’ unique datasets. iNDEX Research, the largest privately-held index provider in Israel, has leveraged TipRank’ analyst recommendation data to develop these innovative indexes. Both indexes have already shown their market-beating capabilities.
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The two, the TipRanks US Momentum Analysts iNDEX and the TipRanks Global Momentum Analysts Index, are each designed to combine the best of active and passive investing. The indexes benefit from an active approach in that they rely on analyst recommendations, which require ongoing human intervention. Seasoned financial experts carefully consider each equity that’s included in the index, considering the factors affecting its performance before the associated company’s earnings report. At the same time, the indexes are passively balanced in that they are updated without human intervention, having been automated to readjust their holdings each quarter.
To build the indexes, iNDEX Research examined the top-performing companies, screening for those with the most Buy ratings from Wall Street analysts, as indicated by TipRanks’ data. Among the stocks awarded at least 10 Buy ratings, iNDEX filtered for those with the highest positive momentum (the rate of change in price movement) on a quarterly basis. The resulting stocks were included in the indexes, which were then balanced to give fair representation to each stock that was added.
KSM Mutual Funds Ltd., which is Israel’s largest mutual fund company, has taken responsibility for issuing the first Tracking fund relying on the TipRanks US Momentum Analysts iNDEX. The index’s past performance has been phenomenal: backtesting of the Global index showed a 30.9% rise over one year and a 30.4% three-year increase. The backtesting results were even better for the US index, with a one-year increase of 37.38% and a rise of 49.94% over three years. Indeed, both indexes have beaten the S&P 500 and the Russell 1000, demonstrating the advantages of incorporating high-quality analyst recommendations into stock indexes.
Uri Gruenbaum, CEO of TipRanks, stated, “I am delighted to collaborate with iNDEX Research and KSM Mutual Funds. This is just the beginning of a significant process that will allow investors to benefit from high-quality indices based on in-depth analyses and recommendations from top analysts globally.”
