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[OP]
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May 7, 2017
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XUT vs QQQ

I seem to have stumbled on to data that points out Canadian utilities as better performers than QQQ. I know some people around here hold these companies long term and I wanted to ask if you also see similar returns.
Screen Shot 2020-07-20 at 7.58.30 AM.png
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https://www.portfoliovisualizer.com/opt ... ints=false

Do let me know if this is something real or I am seeing backtesting anomaly.
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No, you're reading too much into the results you're seeing at it is based on backtesting a certain portfolio to maximize Sharpe's ratio (a measure of return to risk). Obviously getting a bigger bang at lower risk would be great if you knew ahead of time which stocks will give you that but you don't.

If you backtested maximum Sharpe's ratio on all technology stocks (i.e. if you knew that Google, Apple, Facebook will give you max return for risk and allocate your portfolio as such) you'll find the tech returns will way-outperform that of Utilities.

If you want to know what the actual return of XUT compared to QQQ, enter for comparison in the analyzer the 2 portfolios: XUT.to (100% allocation) and QQQ (100% allocation)
[OP]
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WetCoastGuy wrote: No, you're reading too much into the results you're seeing at it is based on backtesting a certain portfolio to maximize Sharpe's ratio (a measure of return to risk). Obviously getting a bigger bang at lower risk would be great if you knew ahead of time which stocks will give you that but you don't.

If you backtested maximum Sharpe's ratio on all technology stocks (i.e. if you knew that Google, Apple, Facebook will give you max return for risk and allocate your portfolio as such) you'll find the tech returns will way-outperform that of Utilities.

If you want to know what the actual return of XUT compared to QQQ, enter for comparison in the analyzer the 2 portfolios: XUT.to (100% allocation) and QQQ (100% allocation)
Of course, I can skin the portfolio twenty different ways if I pick up stocks like Apple etc. But that's another discussion altogether.

_All I am asking is if these companies are really that stable and have other people seen good returns over the years? _

I picked individual stocks instead of XUT to get better exposure to real winners. There are stocks with lower sharpe ratios in the index too and I want to avoid them.
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Oct 21, 2016
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bend3r wrote: Of course, I can skin the portfolio twenty different ways if I pick up stocks like Apple etc. But that's another discussion altogether.

_All I am asking is if these companies are really that stable and have other people seen good returns over the years? _

I picked individual stocks instead of XUT to get better exposure to real winners. There are stocks with lower sharpe ratios in the index too and I want to avoid them.
You could also pick the winners out of QQQ like you did with xut to make it fair .
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Shaun80 wrote: You could also pick the winners out of QQQ like you did with xut to make it fair .
Like I mentioned. I didn’t post this for qqq.

I am asking if you know if these companies have a good track record.
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bend3r wrote: I am asking if you know if these companies have a good track record.
What do you mean by "good track record"? Do you mean consistent similar returns year over year? No, the returns vary a lot year-over-year like any stock. Check it out yourself by entering those stocks into the analyzer.

If you're looking to replicate the past results by holding just those stocks, it might be possible, but you're still cherry picking based on past history. It's not a bad start but why not do the same thing with the tech stocks if you're going to make that comparison.
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WetCoastGuy wrote: What do you mean by "good track record"? Do you mean consistent similar returns year over year? No, the returns vary a lot year-over-year like any stock. Check it out yourself by entering those stocks into the analyzer.

If you're looking to replicate the past results by holding just those stocks, it might be possible, but you're still cherry picking based on past history. It's not a bad start but why not do the same thing with the tech stocks if you're going to make that comparison.
I can figure out price and returns. I am not good with fundamentals. Hence the question.

If I just allocate money to them and get half the returns of qqq, I’d feel safe. However if any of these companies rollover and run into problems in say a year or two - I’d be worried.

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