Stock Splits and Buybacks are often mentioned in the same breath when discussing corporate actions and how they can be used as indicators regarding future performance. I suggest a clear distinction should be drawn between the two. A recent article in Benzinga discusses the performance of two ETF’s that follow indexes of buybacks. I was curious and went to the NYSE where its great graphing capability easily brings up the comparison between one of the buyback ETFs and the 2 for 1 Index. The graph speaks for itself.
