A portfolio of stocks booted from indexes would make an investor 74 times wealthier between 1991 and 2023, the research said. Authors Rob Arnott and Forrest Henslee announced the creation of NIXT, a fund that tracks deletions. The firm's founder and investing legend Rob Arnott and vice president Forrest Henslee wrote that stocks dropped by an index outperform for at least five years with remarkable persistence. After being deleted from an index, nixed stocks can outdo the market by an average of 5% a year. When an index decides to remove an asset, it's essentially creating excessive selling momentum, Arnott wrote.

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Persons: Stocks, Rob Arnott, Forrest Henslee, —, Arnott, That's Organizations: Research Affiliates, Service, Nasdaq, Research