Top 100 stock portfolios
outperform volatile market
Valuable brands deliver superior shareholder returns
China’s stock market volatility over the past year provided a real-life stress test for valuable brands, which continued to outperform the market over time, spiking higher during growth periods and moderating the impact of corrections.
The BrandZ™ China Top 100 Portfolio, which includes all the brands in the China Top 100 ranking, has increased 110.9 percent since July 2010, almost four times the rate of the MSCI China Index, which has increased only 28.1 percent.
During the same period, the BrandZ™ China Top Brands by Brand Contribution Portfolio has increased 178.4 percent, more than six times the rate of the MSCI. The Brand Contribution Portfolio includes the brands in the BrandZ™ China Top 100 with the highest scores in Brand Contribution, a BrandZ™ measurement of brand strength.
Most dramatically, the MSCI lost over half its value between January 2018 and January 2019. The BrandZ™ China Top 100 Portfolio and the BrandZ™ China Top Brand by Brand Contribution Portfolio were not immune to the stock market turbulence, but they declined less precipitously.
These results demonstrate that the investments brands make to build value are measurably rewarded in the stock market. For example, $100 invested in the MSCI China in 2010 would be worth only around $128 today. That $100 invested in the BrandZ™ China Top 100 would be worth $211, and it would be worth around $278 invested in the Brand Contribution Portfolio. Valuable brands deliver superior shareholder returns.