Alpha Brands Consumer Spending Index 2019
The brands index was created in 2016 to offer a dedicated universe of the most relevant & important brands serving U.S. and global consumers. The index is updated each December to reflect the current state of consumption trends and offers exposure to important consumption categories. The index committee identifies the most appropriate consumption industries to track, ranks all companies in each industry to identify the leaders, then decides how much exposure is warranted to each industry based on it’s consumer trends research. The 200 companies chosen reflect the committee’s choices for the most relevant and iconic brands that are currently resonating the best with consumers. The 200 brands constituents also include a handful of B2B brands that are deemed vital to the consumption supply chain. 90% of the 200 brands are domiciled in the U.S. and 10% of the brands are domiciled outside the U.S.
Here’s the indexes 3YR track record of live performance from: 9/16/16 to 9/16/19. Bloomberg symbol, BRANDS Index GO
The Green line is the Brands Index and has performed well versus the equal weight S&P 500 and in-line with the S&P 500 cap-weighted index but offers a better reflection of the real economy given its persistent overweight to leading consumer discretionary (roughly 40%) & consumer staples (roughly 20%) brands.
The Brands Index serves as the investment universe for the Alpha Brands suite of investments in partnership with Accuvest Global Advisors.
If the S&P 500 is supposed to be a proxy investment for the economy as S&P states, why does the S&P 500 only have roughly 22% in consumer sectors when consumer spending is 72% of GDP?
The Brands Index weights better reflects the primary drivers of the real economy and is therefore a better index to track U.S. economic output.
Alpha Brands Consumer Spending Index: Sector Weights
Click the image to learn more about the Brands Index and how it was created.
