Goldman Sachs, a prominent investment bank, has rebalanced its High Sharpe Ratio Basket, which consists of S&P 500 companies expected to outperform the median stock by a significant margin. The basket identifies firms with advantageous risk-adjusted returns, and it has generated a 3% return year-to-date, outpacing traditional cap-weighted and equal-weighted S&P 500 indices. Investors may consider these stocks for their portfolios, particularly after a tumultuous market year, as they may represent strong dividend and growth opportunities.
Within the S&P 500, our High Sharpe Ratio basket contains companies with the highest prospective risk-adjusted returns relative to their sector peers. The basket's median constituent has a prospective risk-adjusted return of 0.9.
Our High Sharpe Ratio basket has posted a year-to-date return of 3%, outperforming both the cap-weighted S&P 500 (2%) and equal-weighted S&P 500 (1%).
The rebalance of Goldman Sachs High Sharpe Ratio Basket gives us a chance to look at the current holdings, as well as the stocks that can outperform the median S&P 500 company.
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