Example Results

Ziel Advisors LLC has developed a proprietary investment methodology that enhances returns utilizing quantitative and qualitative parameters that maximize dividend growth compounding investing.  Dividend growth compounding is a method of investing in stock of companies with a historical record of year over year dividend increases, and then reinvesting these dividends into shares of the same companies.

Our strategy consistently outperforms the S&P 500 Index on a long term basis while offering lower volatility and increasing annual dividend income through up and down markets.

We applied our methodology to stocks available in 2005 and hypothetically invested $100,000 into 18 stocks, equally weighted, called “Portfolio 1”.  Here are what the investment returns would have been over 13 years, from the beginning of 2005 through the end of 2017, compared to the returns of SPY, an ETF identified in the charts below as SPDR, which tries to mirror the returns of the S&P 500 Index.  Note the results are with the same 18 stocks for the entire period, regular dividend reinvestment, annual rebalancing, and reflect an annual withdrawal of 1%.  Results do not include any other costs or taxes.

 

The above is an annual return comparison. Note how much better Portfolio 1 does during down markets.
Above are the increasing annual dividend income returns. Note that income continues to go up in both up and down markets.
Above find the annual return comparison. Note how much better Portfolio 1 does during down markets.

Finally, the above 2 charts are the respective 3 and 5 year rolling returns comparisons. Note that Portfolio 1, the top chart, has no losses in any 3 or 5 year rolling period as compared to the S&P 500 in the bottom chart.

 

Here are the Metrics for technical analysis.  Note the Maximum Drawdown of Portfolio 1 compared to the S&P 500

Portfolio return and risk metrics
(*) Beta is calculated against SPDR S&P 500 ETF (the selected benchmark). Market correlation is against the US stock market. Value-at-risk metrics are based on monthly returns.
Mean Return (monthly) 0.99% 0.76%
Mean Return (annualized) 12.57% 9.48%
Compound Return (monthly) 0.95% 0.68%
Compound Return (annualized) 12.02% 8.45%
Volatility (monthly) 2.88% 3.95%
Volatility (annualized) 10.00% 13.72%
Downside Deviation (monthly) 1.74% 2.70%
Max. Drawdown -23.46% -50.80%
Market Correlation 0.84 1.00
Beta(*) 0.62 1.00
Alpha (annualized) 6.28% -0.00%
R2 72.01% 100.00%
Sharpe Ratio 1.07 0.58
Sortino Ratio 1.75 0.84
Treynor Ratio (%) 17.37 7.93
Diversification Ratio 1.83 N/A
Skewness -0.70 -0.79
Excess Kurtosis 1.73 2.37
Historical Value-at-Risk (5%) -4.24% -6.95%
Analytical Value-at-Risk (5%) -3.72% -5.76%
Conditional Value-at-Risk (5%) -6.71% -9.74%
Positive Periods 105 out of 156 (67.31%) 103 out of 156 (66.03%)
Gain/Loss Ratio 1.18 0.84

 

HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN INHERENT LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT ACTUALLY BEEN EXECUTED, THE RESULTS MAY HAVE UNDER OR OVERCOMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFITS OR LOSSES SIMILAR TO THOSE SHOWN.