Since the beginning of 2023, only 3 out of 8 SBITOP constituents outperformed the index more than 50% of the time.
Today, we bring you a brief overview of the performance of SBITOP and its constituents, as well as how each individual constituent performed as compared to the index as a whole. In this way, it can be seen if it was more worthwhile to invest in the index as a whole or individual companies. Of course, this does not include the inherent higher costs of investing in individual companies instead of an index fund, or an ETF that tracks the entire index.
Thus far in 2023, the SBITOP index as a whole had a return of 19.5%, and if it continues in this trend, it could end up coming close to app. 40% growth that it recorded in 2021. Even though the development thus far is quite favorable, this prediction is tricky given the number of variables influencing the index, Slovenia, and equity markets as a whole.
In this light, how did the other members perform compared to the index?
How much did individual constituents outperform/underperform compared to the index (YTD, p.p.)
Source: Bloomberg, InterCapital Research
Among the companies in the index, the largest growth on a YTD basis was recorded by Luka Koper, with an increase of 31.5%. Following them, we have Krka at 27.7%, NLB at 23.4%, and Sava Re, at 11.6%. This would mean that as compared to the index, Luka Koper recorded an 11.9 p.p. higher return, Krka 8.2 p.p. higher return, while NLB recorded a 3.9 p.p. higher return. Other companies all recorded lower returns compared to the index, with the lowest one being Equinox, which is also the only one to have a negative YTD return of 3.6%, meaning it underperformed the index by 23.1 p.p. Triglav recorded a 0.9% return in the period also underperformed the index, at 18.7 p.p.
Thus far in 2023, there have been 135 working days in Slovenia. On those days, 3 companies outperformed the index by more than 50% of the days. These 3 include Krka, NLB, and Cinkarna Celje, at 52.6%, and 50.4% for both NLB and Cinkarna Celje, respectively. Of course, as we can see above, this shouldn’t be taken in isolation as Cinkarna proves – even though it more often had positive returns compared to the index, the overall index had higher returns on its positive days, or vice versa, than Cinkarna. This does give us some indication of the company’s performance, as Equinox was the only company with a negative YTD return, and only outperformed the index on 43% of the working days.
How often do SBITOP constituents outperform the index (amount of days, %)
Source: Bloomberg, InterCapital Research
