Beta accounts for the differences in volatility (standard deviation) between the return series of each selected asset and the Total Market
With betas close to 1 - in a range of 0.9< asset betas < 1.05 - assets are moving in sync with the market as defined by the Pininvest 1200 index
By prioritizing above-average dividend yields, the selection of large and midcap (> $2 bn) equities currently highlights a narrow segment of the market, the recovery story of the banking and real estate sectors
To index performance over time, the targeted long term price trend of each selected asset will be strong - with an average monthly price outpacing the one-year trend
Sector rotation should be expected over time
Assets in the selection, updated dynamically as the asset prices vary day-by-day, should always be evaluated on a case-by-case basis - to account for special events such as mergers or reverse splits
To enter consideration as potential investment, the Impact feature of Pininvest portfolio management will evaluate the potential shift in performance, risk and distribution for the portfolio