The Best Investments for the Next Decade: Stock Split Index Fund (TOFR)
The USCF ETF Trust (NYSEARCA:TOFR) is one of the better ETFs out there that uses both passive and active management to manage the fund’s assets.
Its premise is simple.
TOFR tracks the 2 for 1 Index — a group of 30 stocks that have all announced a 2-for-1 split or higher within six months of being included in the index. Once included in the index, a stock remains for approximately 30 months when it’s sold, and a new one is added to replace it. That’s the passive part.
The active role comes with the stock selection. Each month, one stock is sold from the portfolio, and another is added by Neil Macneale, the creator of both the “2 for 1 Newsletter,” which he started in 1996, and the index that followed in September 2014.
Although TOFR is expensive for an ETF at 0.55%, I believe that this is one of the best ways to invest in the U.S. markets while getting a little extra performance than investors are used to from the S&P 500.