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COWS

Kelly US Cash Cow Leaders Index

Why Exposure to this Index

The strategy targets US companies with strong cash flows and healthy balance sheets. Free Cash Flow (FCF) Yield measures the amount of cash generated from the core operations of a company relative to its valuation.

INDEX DETAILS

Index Name
Kelly US Cash Cow Leaders Index
Index Calculator
Morgate Benchmarks Ltd
Weighting Method
Modified Market Cap
Rebalance
Quarterly
Weighted Avg Market Cap
-

Documents

Index Fact Sheet
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Index Methodology
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Index Overview

The Kelly US Cash Cow Leaders Index seeks to provide total return by investing in a passively managed, concentrated portfolio of companies that generate a high free cash flow yield.

The Index uses an objective, rules-based methodology to provide exposure to mid- and large-capitalization U.S. companies with high free cash flow yields. Companies with high free cash flow yields are commonly referred to as “cash cows”.

  • Designed to capitalize on companies s to provide capital appreciation over time by screening the Morningstar US Large-Mid Cap Index for the top sixty-five companies based on free cash flow yield.
  • The initial index universe is derived from the component companies of the Morningstar US Large-Mid Cap Index.
  • Free cash flow is the cash remaining after a company has paid expenses, interest, taxes, and long-term investments. It can be used to buy back stock, pay dividends, or participate in mergers and acquisitions.
  • The ability to generate a high free cash flow yield indicates a company is producing more cash than it needs to run the business and can invest in growth opportunities.
Invest Now

It is not possible to invest directly in an index. Exposure to an asset class represented by an index is available through investable instruments based on that index. Strategic Investments does not sponsor, endorse, sell, promote or manage any investment fund or other investment vehicle that is offered by third parties and that seeks to provide an investment return based on the performance of any index. Strategic Investments licenses its indices to third parties for the creation of investment funds or other vehicles, such as exchange-traded funds (ETFs), exchange-traded notes (ETNs), institutional asset mandates, and structured notes.

The information contained does not reflect the performance of any fund or account managed or serviced by Strategic Investments, and there is no guarantee that investors will experience the type of performance reflected above. There is no guarantee that any historical trend illustrated herein will be repeated in the future, and there is no way to predict precisely when such a trend will begin. There is no guarantee that any market forecast made in this commentary will be realized. The mention of specific securities is not a recommendation or solicitation for any person to buy, sell or hold any particular security and should not be relied upon as investment advice. The views and opinions in the preceding commentary are as of the date of publication and are subject to change without notice. This material represents an assessment of the market environment at a specific point in time, should not be relied upon as investment advice, is not intended to predict or depict performance of any investment and does not constitute a recommendation or an offer for a particular security. We consider the information in this presentation to be accurate, but we do not represent that it is complete or should be relied upon as the sole source of suitability for investment.