I am participating in the Money Pros Index Fund Challenge which is a stock picking contest where each contestant gets to invest $1000 in three different stocks and whoever has the highest return for the year is the winner. Currently I’m in the bottom half of the challengers with a return of 3.23%. That is well below the leading contestant’s return of 31.12% and even below the S&P 500 return of 8.49%. I knew when I entered the contest I wouldn’t likely be a leader since I was picking relatively stable dividend-paying stocks but I did think I could beat the S&P 500.
Part of the reason I haven’t done as well as I hoped is that despite the contest saying dividends will be reinvested in more shares that isn’t happening. Without the dividends being considered it is no surprise that my stocks aren’t showing a good return. Doing my own calculations including the dividends in my return I come up with a return of 4.8% which is better but still quite a bit less than the S&P 500 return. I think my return will eventually come closer to the return of the S&P but I’m not too concerned about it since I invest more for yield than total return.
Are any of you competing in this contest or another stock contest? How are you doing?