“The academic studies of stocks undergoing splits suggest that you could beat the market by simply creating a portfolio that contained all stocks undergoing a so-called forward split (the opposite of a reverse split). But MacNeale believes he can do even better by investing only in stocks that, at the time of their splits, are trading for relatively low ratios of price to earnings or book value ,” writes Mark Hulbert for MarketWatch.
A University of Virginia confirms that splits boost liquidity via increased post-split buying by, if you can believe it, mutual funds.
And while the concept of an ETF devoted to stock splits is sure to ruffle the feathers of some ETF traditionalists, it cannot be forgotten that ETFs focusing on concepts such as buybacks and spin-offs have not only proven popular with investors, but have also soundly outpaced the broader market as well. [Spin-Off ETF Out-Performance]
“The TOFR Stock Split fund has delivered some impressive results so far gaining over 5% versus around 1.4% for the S&P 500. The fund is lightly traded with only 4.8 million in AUM. Limit orders would be a wise approach if buying or selling this fund. If the fund continues to outperform then this fund should gain assets,” according to a Seeking Alpha post.
USCF Stock Split Index Fund
