Report Analytics USA #2
This post contains a lot of unsexy calculations and is fairly technical. But (in my opinion) there are some very interesting results. Not just for my particular strategy but for everyone who is active on Wikifolio.
First. Overall and especially after costs, my two Wikifolios weren’t a good alternative to a standard ETF on the S&P 500 index (from inception to March 11, 2022). To my defense, however, I stressed several times that the two Wikifolios are just a real-world test of my master thesis and I never marketed them as investments.
Second. I still believe that Wikifolio is a great platform to test strategies like mine, but it is not perfect. There are annoying technical issues, pretty high fees, and significant indirect trading costs. Depending on the liquidity of the stock, bid-ask-spreads and/or unfavorable FX rates amount to 40-80 basis points per transaction on average.