INDEX REVIEW STRATEGY – CAPTURING OPPORTUNITIES FROM INDEX REBALANCING

The Index Review Strategy has consistently delivered double-digit growth, outpacing global benchmarks like the S&P 500 and VN-Index. With upcoming reviews in September 2025, this is the perfect moment to discover how a systematic approach can turn market inefficiencies into exceptional returns.

The Index Review Strategy is built on a simple yet powerful principle: major equity indices (such as CAC 40, FTSE 100, EURO STOXX 50, S&P 500, VN-Index, etc.) are periodically rebalanced to better reflect market conditions.
Each review cycle, the addition or removal of constituents triggers significant capital flows from ETFs and index-tracking funds, leading to short-term price dislocations.

The strategy aims to anticipate these flows by:

• Increasing exposure to stocks likely to be included in the index.
• Divesting/reducing exposure to stocks expected to be excluded.
• Actively rebalancing portfolios to capture demand–supply imbalances driven by passive fund flows.

Both academic research and market practice have consistently shown that:

• Stocks added to indices often experience strong price appreciation before and shortly after inclusion announcements.
• Stocks removed from indices tend to face sustained selling pressure until rebalancing flows stabilize.

By systematically exploiting this phenomenon, the Index Review Strategy delivers superior returns relative to traditional market approaches.

As of August 25, 2025, performance data confirms the strategy’s effectiveness:

• Absolute Returns: Over +60% in 2025 alone, extending the strong growth trajectory of 2023–2024.
• Cumulative Growth: Select indices applying the strategy have grown 4–5x in just three years (2023–2025).
• Benchmark Comparison: Versus S&P 500 and VN-Index, the strategy consistently generates +30% to +40% excess annual returns.
• Annualized Returns: Exceeding 100% per annum in several markets, significantly outpacing benchmark standards.

These results highlight not only the short-term opportunities but also the long-term compounding effect of consecutive review cycles.

1️⃣ Short-Term Effectiveness (Quarterly Performance)

• Q1/2025: +4.11%
• Q2/2024: +16.50%
• Q3/2024: +31.94%
• Q4/2024: +11.87%

➡️ Within just 12 months, multiple double-digit surges were captured, creating a clear tactical edge.

2️⃣ Long-Term Effectiveness (Yearly Performance)

• 2023: +84.45%
• 2024: +85.95%
• YTD 2025 (as of 25/08): +68.07%

➡️ Three consecutive years above +60%, demonstrating sustainability and capital-doubling potential through review cycles.

3️⃣ Superior Cumulative Growth (Absolute Cumulative)

• 2023: +476.45%
• 2024: +212.53%
• 2025 YTD: +68.07%

➡️ Compounding power is evident: investors could achieve 4–5x portfolio growth within three years.

4️⃣ Benchmark Comparison: S&P 500

Excess Returns vs. S&P 500:

• 2023: +60.22%
• 2024: +62.64%
• YTD 2025: +58.59%

➡️ Outperformance sustained against the world’s most recognized benchmark, reinforcing the robustness of the strategy.

5️⃣ Benchmark Comparison: VN-Index

Excess Returns vs. VN-Index:

• 2023: +72.25%
• 2024: +73.84%
• YTD 2025: +37.13%

➡️ Effectiveness is not limited to global indices but also proven in domestic markets.

6️⃣ Annualized Performance

• Absolute Annualized 2025:+120.05%
• Excess Annualized vs. S&P 500:+105.30%

➡️ Annualized returns are double those of the S&P 500, ranking the strategy among the most attractive systematic approaches available.

September 2025 will mark several pivotal rebalancing events:

• CAC 40 (Euronext Paris): Announcement 12/09 | Effective 19/09
• FTSE 100 (London Stock Exchange): Announcement 03/09 | Effective 19/09
• EURO STOXX 50 (Xetra): Announcement 05/09 | Effective 19/09

These events will trigger significant ETF and index fund reallocations, creating prime opportunities for proactive investors.

The Index Review Strategy is not a speculative tool but a systematic framework grounded in:

• Historical rebalancing data analysis.
• ETF flow forecasting.
• Disciplined risk management through defined take-profit and stop-loss levels.

With a proven track record and multiple index reviews on the horizon in September 2025, the Index Review Strategy remains a core tool for professional investors seeking to outperform benchmarks.

Monitor rebalancing dates closely and prepare strategies in advance to fully capture these cyclical opportunities.