Volume 3 • Issue 2 | September 2019

How Trading the S&P 500 ETFs “Beats” the Market by an Average of 30% in Annual Returns

Lanh Tran


The market refers to the S&P 500 index, which is an important benchmark of U.S. stock performances, and“beating”the market means earning a return greater than the market. The historical average annual market return is approximately 10% since its inception in 1928. The purpose of this paper is to showcase a trading strategy that earns an average annual return of about 13%, which is 30% higher than the historical average annual market return. The strategy is contained in the website WaveletTrader.com, which is quite user-friendly, and no special skills or prior practice is needed. It has been generally believed that coming up with a scientific system to “beat” the market is impossible. But the results of this paper strongly suggest otherwise.

JEL classification: C1, C6, G140