The reality is that very few individual stocks beat the S&P consistently. That’s where ETFs come in. But not all ETFs are created equal:
> Equal-weighted ETFs mix the bad with the good.
> Sector ETFs eventually fall out of favor.
> Fixed stock ETF portfolios often underperform the S&P by about 5% a year.
> Managed portfolio ETFs underperform 85% of the time.

So what works? ETFs that not only outperform the S&P but also improve over time. My choice: SPY and TQQQ.
> SPY tracks the S&P — the benchmark investors have underperformed for 75 years.
>TQQQ acts like the 50 fastest-growing NASDAQ stocks, tripling the index’s returns over the past decade.

The key is annual rebalancing. Without it, TQQQ’s weight grows too large and creates risk during corrections. With it, you generate profits in rising markets and buy TQQQ at bargain prices during downturns.

That’s how Stars works: half of its performance comes from price appreciation, half from buying more during corrections. The result? Stars has outperformed the S&P by a factor of 17 over the past 26 years.