Nike, Inc. (NKE) is the company most recently added to the 2 for 1 Index®. NKE replaced American States Water (AWR) on February 12, 2016. Nike announced its split back in November but was not added to the Index at that time because of its relatively pricey PE and other valuation metrics. As a result of the market pullback, Nike came to an acceptable price point and became February’s selection for the 2 for 1 Index.
No one likes to see their portfolio go down but, because it went down less than the broad indexes, there is some consolation in the fact that we have still beaten the market. The 2 for 1 Index dropped about 3% vs. the broad market’s decline of over 5% over the 1st month of 2016. The hope is that this higher launching pad will allow 2 for 1 to take off and keep well ahead of the market for the rest of the year and beyond.
There have been three 2 for 1 split announcements so far in November, Nike (NKE), Edwards Lifesicences (EW), and Hormel Foods (HRL), offering up a good selection for the monthly update of the 2 for 1 Index® on December 18th. The 2 for 1 Index, the basis for the Stock Split Index Fund (TOFR), is up 4.9% so far, YTD.