Research shows firms deleted from indices often perform better
Intel shares are down 60 per cent in 2024, prompting talk it may be kicked out of the Dow Jones index.
The ETF, which is available to Irish investors but not in the rest of Europe, may sound like a gimmick, but research shows companies deleted from indices tend to outperform their replacements. Deleted companies “are often unloved, have fallen out of favour and are no longer valuable enough to be deemed important”, says Arnott. Similarly, index additions tend to be high-flyers – typically, they have more than doubled compared to the stocks they replaced.
Market trends often go too far, setting the scene for an eventual reversal. Arnott’s research suggests that over the following five years, deleted stocks outperform by more than 5 per cent annually.
Ireland Latest News, Ireland Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Intel’s research and development facility at Shannon to close next yearBase for those currently working in Co Clare operation to be moved to Leixlip or abroad but no additional redundancies expected
Read more »
Intel receives millions more in Irish Government aidChip manufacturer received a further €2.5m in IDA supports as Irish-based staff await details of early retirement and voluntary redundancy scheme
Read more »
Connected newsletter: Revolut goes after business users as investors flee from IntelConnected at the Business Post is your source for the news that matters in technology and innovation, all told from an Irish perspective
Read more »
Intel begins consultation with Irish staff on job cutsChip giant confirms departure terms alongside details of other cuts to work benefits for those who stay
Read more »
Irish staff in the dark as Intel starts global cutsChipmaker seeking to slash costs as company struggles
Read more »
Your top stories on Friday: Garda Commissioner rules out extending contract; woman killed in Mayo crashSinn Féin to scrap housing subsidies in election pledge while Intel staff remain in the dark
Read more »