The S-Network YARP Large Cap Value 50 Index is a sophisticated value equity strategy that selects the top 50 companies in the S-Network US Equity Large Cap 200 Index. Index components are determined by the stock’s dividend yield, yield history and proprietary YARP (Yield-at-a-Reasonable-Price) valuation score.YARP has been highly effective in evaluating the tradeoff between a stock’s long-term upside potential and risk of major loss.
Yield at a Reasonable Price (YARP) investing is a way to stress-test decision-making for yield-oriented investors. A stock may be statistically “cheap,” but that does not mean it is priced to move higher. That’s why we created and employ the YARP approach to equity valuation.
When analyzing and investing in dividend-paying stocks, standard valuation measures may be less helpful. YARP analysis incorporates a number of factors, including the stock’s yield history, price volatility, and dividend stability.It uses the dividend yield in a way that traditional value investors might use historical price-earnings or similar metrics to judge a stock’s attractiveness.
The S-Network YARP Large Cap Value 50 Index depends on a clearly defined rules based methodology, which is overseen by an impartial Index Committee. No discretion is exercised in compiling the index and a pre-defined screening protocol assures a consistent, transparent and arms-length compilation process.