A Complete Guide to Understand Stacks – An investment portfolio | Stockal
February 17 2021 - Team Stockal
U.S. stock markets have been major wealth creators among other global equities, having withstood turbulent economic times, one of them being the financial crisis in 2008. The main indexes of Wall Street — the S&P 500 (GSPC), the Dow Jones (DJI) and the Nasdaq (IXIC) — have maintained this trend over the past five years as well, more than doubling people’s investments.
5 year Returns of Major Wall Street Indices
In fact, from the turn of the century, markets have given stellar returns to investors.
Wall Street Indices’ Returns From 2000 Till Now
However, on the downside, investors have also lost money by indulging in frenzied investing, trading on misinformation, and having a lack of research and analysis before buying or selling a stock. It would be prudent to pick fundamentally-sound companies, through in-depth financial research, before taking a call. Given that it is time-consuming and cumbersome without the right resources, investors can look to credible advisors to do this job. Stockal’s Stacks is one such robust offering which helps you keep your money in the right instruments and grow your wealth.
How does it work?
Stacks are pre-configured baskets of stocks & ETFs (exchange-traded funds) that you can invest in with a single click. These are developed by hedge funds, global asset management companies, experienced wealth management firms and portfolio managers.
The ready-made portfolio consisting of these instruments are usually based on a theme or an idea, ranging from healthcare and electric vehicles to internet technologies, capital goods and ESG (environmental, social and governance), among others.
What are its advantages?
Stacks help in growing your wealth as its baskets are created after investing a lot of time and study. They focus on the companies’ fundamentals, their growth potential, among several other parameters to generate a single basket of stocks and ETFs.
- With Stacks, investors can easily diversify their portfolios, without indulging in deep research.
- The baskets are managed by experts that perform financial analysis of thousands of stocks and ETFs before arriving at a conclusion to bunch them up.
- Their thematic nature helps investors bet on an ongoing or a promising trend in the markets, helping them cash in on current and potential booms in those shares and ETFs. For instance, higher performance of electric-vehicles segments could boost the performance of such thematic stacks.
- One of the thumb rules in any investment principle is reviewing and rebalancing your holdings to capture the market’s pulse. With Stacks, the baskets are actively and consistently rebalanced to ensure alignment with its goals and benchmarks.
Stacks on offer
Through our platform, you can invest in a variety of Stacks prepared by various financial experts and institutions. Stacks have also exhibited stellar returns in the past three years. Let’s take a brief look at some of the Stacks.
US Tech Bluechip Portfolio: This basket invests in pure technology internet companies that benefit from uptrends in hardware, software, internet, OTT and Cloud — critical segments that have leading advantages in their businesses. Its top holdings include Apple (AAPL), Microsoft (MSFT), Google (GOOG) and e-commerce giants such as Amazon (AMZN). In the last three years upto December 31, 2020, the Stack has returned 141.29%.
Electric Vehicle Portfolio: This stack comprises companies involved in the electric vehicles’ technology, autonomous vehicles, battery, EV components, and general cleantech companies that have a huge growth potential. The Stack’s top holdings include Tesla (TSLA), Toyota (TM), General Motors (GM), Sempra Energy (SRE) and Ameren (AEE). The Stack has returned a whopping 167.65% in the past three years up to December 31, 2020.
The Obvious Portfolio: As the name suggests, this Stack contains the most dominant internet, media and technology firms. The likes of Facebook (FB), Amazon, Apple, Netflix (NFLX), Google and Microsoft are a part of this basket. These companies are consumer-secular and have strong businesses diversified across several sectors. In the past three years, the Stack has jumped 137.54%, as of December 31, 2020.
Peace of Mind ETF: Apart from just equities, Stockal Stacks also offer baskets consisting of ETFs. Its Peace of Mind ETF comprises ETFs across bond and equity markets. These provide the benefits of diversification and carry very low risk. Its top holdings include Invesco QQQ (QQQ) and Vanguard S&P 500 ETF. In the past three years, until December 31, 2020, the Stack has added about 47.32%.
Global ETF Portfolio: This stack is limited to equity index-only ETFs present across U.S. and global equity markets. Investing in this Stack can give you a diversified exposure to global markets, including U.S., European, BRICs, emerging and frontier equity markets. Top holdings for the stack include Invesco QQQ and The Utilities Select Sector SPDR Fund (XLU). It has returned 54.45% to investors in the past three years, as of December 31, 2020.
How Numbers Stack Up
Some of the other prominent Stacks include The MultiFactor, the Findea TwinMomentum, The GlobalX Equity Income Portfolio, The Omniscience AIoT, and The Omniscience Supreme US. Here’s a look at their returns chart.
Three Year Returns of Other Stacks on Stockal
Stacks offer you the twin benefits of investing in robust equities and ETFs while ensuring a thoroughly-research-backed tool. A long-term investment in such products would help you grow your investments and mitigate the risks while watching your money grow at the same time. Visit our website to learn more, and start investing in Stacks!