XOUT Capital®, in collaboration with EQM Indexes LLC, reveals the answer to the speed of technological change in a new whitepaper titled “The Cost of Underestimating Technological Disruption.”
“Investors are underestimating the rapid pace of technological disruption and its impact on companies across industries. While virtually all investment strategies today focus on identifying thriving companies, not owning those left behind by technological change presents investors with a compelling opportunity to generate alpha.” – XOUT Capital®. “XOUT seeks to capitalize on technological disruption by eliminating companies in its investable universe that are unable to adapt and thrive in an evolving technological and economic landscape.“
The paper explores the speed disruptive technology and innovation has had on all companies and seeks to educate readers on how exclusion works by avoiding the disruptees. The whitepaper looks at some of the industries that have been permanently impacted by accelerating technological change and COVID-19 including Communications, E-commerce, and Transportation. The paper delivers facts and figures in terms that can be easily understood.
Given the fast-evolving technological arena, it may be difficult to understand—let alone forecast fully— how technological disruption will affect businesses across industries. However, XOUT Capital believes that its index offers a better approach to navigate the impact of technological disruption across industries – by simply not owning the disruptees in a market index. This approach takes the guesswork out of identifying winners and losers with the potential to generate alpha. XOUT’s conclusion remains that time and again, technological disruption and innovation have created winners and losers. XOUT offers an alternative to traditional active and passive investment approaches by focusing on what companies NOT to own – and simply “X” them “OUT” – amid a constantly shifting investment landscape.
The whitepaper is available on the XOUT Capital® and EQM websites.
About XOUT Capital
XOUT Capital® was founded by David Barse as an index company specializing in identifying which companies not to own or “XOUT” in an index. XOUT’s first index, the XOUT U.S. Large Cap Index, evaluates the 500 largest U.S. companies and determines how each company addresses the challenges of technological disruption. Since its inception on July 1, 2019, the Index is up 72.6% as of September 17, 2021, vs. the S&P 500 Total Return Index which was up 55.4% for the same period.
For more information visit https://www.xoutcapital.com/. XOUT Capital® can also be found across social media, including Twitter, LinkedIn, and Instagram.
About EQM Indexes LLC
EQM Indexes LLC is a woman-owned firm dedicated to creating and supporting innovative indexes that track growth industries and emerging investment themes. Co-founded by Jane Edmondson, a former Institutional Portfolio Manager with more than 25 years in the investment industry, our index design expertise spans a wide range of asset classes and financial instruments.
We partner with issuers and work jointly with other index firms to provide benchmarks for Exchange Traded Products (ETPs) such as Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), and other similar products. EQM Indexes LLC also assists firms on a fee basis to design and implement their index ideas. EQM Indexes does not offer investment advice, nor offer the sale of securities.
Performance data quoted represents past performance and is no guarantee of future results. Current performance may be lower or higher than the performance data quoted.
The XOUT U.S. Large Cap Index utilizes a proprietary, quantitative methodology developed by XOUT Capital, LLC designed to identify companies that have a risk of being disrupted and as a result could underperform their relevant sector. The companies identified are then excluded from the index selection. There is no guarantee the index will be successful in excluding companies that are at risk of being disrupted or possibly underperform their relevant sector. Exclusion or inclusion of a security within the index is not a recommendation or solicitation to buy, hold or sell any security.
Past performance does not guarantee future returns. One cannot invest directly in an index.
SOURCE XOUT Capital