Large Cap is one of our Limited Edition Kits that uses a long-short approach (like a hedge fund) to capitalize on the divergence between large-cap stocks and small-cap stocks. In low- to no-growth environments, smaller companies tend to underperform larger ones. This Kit rebalances weekly to hold equal weights of a large-cap ETF and an inverse ETF for small caps.

Examples of assets in the Kit

  • Large cap ETF (Russell 1000)

  • Inverse ETF for small caps (inverse Russell 2000)

Example of Kit allocation in a given week

Kit benefits

This Kit holds equity in the 1,000 largest U.S. companies and is betting against the next 2,000 largest. As long as large-cap companies outperform small-cap stocks, any investor can benefit from this Kit regardless of how the market moves.

Asset class focus

U.S. equities (through ETFs)

Risk level

Low

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