IVR 10-30 Bull Credit

V2:  Watchlists; more symbols (Morningstar Wide Moat Focus, and a few ETFs); Expiration and Position Size are Bot Inputs now so you can change from exactly 30 days and $2000 position size.

Upgrading IVR 10-30 Bull Credit Bot with Bull Credit Watchlist and Morningstar Wide Moat Focus symbols

Introduction to the  Morningstar Wide Moat Focus TR index

This is a good stock index performance-wise:

The key to this outperformance:  Active management.  The Focus Index engages in a process of buying undervalued wide moat stocks and selling overvalued wide moat stocks.  For example, in December 2023, seven stocks were added to the Focus Index:  RTX, KEYS, CPB, BMY, MO, TMO, and HII, and seven stocks were completely or partially removed:  MMM, K, AMGN, DPZ, TW, GWRE and PII.  This process occurs 4 times a year.

Just owning wide moat stocks of any valuation does not outperform in the long run:

The Focus Index is not excessively risky:

The Focus index is differentiated from the S&P 500.  Holding just 50 symbols vs. 504, equal-weighting with a target of 2.5% or 1.25% per symbol vs. market-cap weighting are major differences.  The S&P 500 10 largest holdings are Microsoft, Apple, Nvidia, Amazon, Meta, Alphabet (2 share classes), Berkshire Hathaway, Eli Lilly and Broadcom. The Focus index, in contrast, has four of those 10:  Microsoft, Amazon, Berkshire Hathaway and one share class of Alphabet (GOOGL).

Sources:

https://indexes.morningstar.com/indexes/details/morningstar-wide-moat-focus-FSUSA07Z10?tab=performance

https://www.morningstar.com/wide-moat-stocks

https://www.morningstar.com/best-investments/wide-moat-undervalued-stocks

https://www.morningstar.com/best-investments/wide-moat-focus

https://www.morningstar.com/markets/how-find-stocks-poised-outperform

https://www.morningstar.com/markets/how-find-stocks-poised-outperform-2

https://indexes.morningstar.com/insights/index-ip/blt7a4a17e56faa155f/morningstar-wide-moat-focus-magnificent-despite-the-seven

Morningstar Wide Moat Focus Symbols (December 2023)

ETSY, NKE, CRM, MAS, EFX, USB, MKTX, A, TYL, IFF, RTX, SCHW, ECL, DIS, GILD, KEYS, WFC, ALLE, ICE, MDT, TER, ZBH, GOOGL, CPB, CMCSA, BIIB, PFE, VEEV, EL, CTVA, TRU, MSFT, BLK, ROP, MCHP, AMZN, HON, HII, BAC, TMO, MO, BMY, BRK/B, WAT, BK, EMR, MMM, K, FTNT

Bot Watchlist:  Bull Credit:  TQQQ SMH XLK SO MARA TJX ROST OKE A AMZN BIIB CMCSA CRM CTVA EMR GOOGL ICE MCHP

Sort:  IV Rank low→high

IVR Rank is between 10-30

Limit:  10 symbols

Current symbols:  AMZN, EMR, OKE, XLK, GOOGL

1 Year Backtests