In the long term, the market rewards companies for demonstrating good business fundamentals. Examples include companies that sell goods and services to a large number of people while profiting handsomely by containing costs. Sure, in the short term the market can function as a sort of popularity contest. However, over time there is nothing better than investing in companies bringing in big bucks, and that’s precisely what the RevenueShares Large Cap Fund (RWL) has been designed to do.
RWL deviates from the usual approach of investing in S&P 500 companies based on their market capitalization; it uses a strategy that invests in companies based on their revenues. The fund attempts to outperform the S&P 500 Index by reweighting the securities in the S&P 500 each quarter based on the companies’ revenues. This fund also may hold up to 20% of its investments outside of its benchmark index.
This fund’s strategy helped to produce gains of 35.51% in 2013. So far this year, RWL has jumped 6.91%, while also delivering a yield of 1.46%.
Read more about this revenue-focused ETF at Eagle Daily Investor.
