Signature share baskets, including RRG Momentum+ baskets, are among the most interesting recent additions to the offering of UK online broker CMC Markets Plc (LON:CMCX).

Designed in conjunction with industry experts, signature baskets are constructed by applying complex investment methodologies to highlight constituents which share common price behaviour, rather than just focusing on industry sector, geography or size.

The first set of these signature baskets are based on Relative Rotation Graphs, which identify those stocks which are exhibiting positive momentum when compared to their benchmark indices. By purposely avoiding stocks which are seen to be underperforming, back testing has shown that the strategy historically outperformed the wider market.

The Relative Rotation Graphs (RRG) Momentum+ products are share baskets of 10 individual stocks tracking positive momentum, constructed in collaboration with RRG Research.

The RRG Research team has recently provided the so-called “quarterly rebalance” regarding these products. Going into Q3 the RRG model selected 10 new stocks that are exhibiting strong, relative momentum.

The constituents come from six different sectors:

• Financials: Investec, Brewin Dolphin, and M&G
• Communication Services: Future
• Industrials: IMI, and PageGroup
• Healthcare: Indivior
• Materials: Elementis
• Consumer Discretionary: Frasers group, and TI Fluid systems

This results in a very diversified basket which, in the light of the current market choppiness, positions the CFD portfolio well for Q3.

In April, six new baskets were added to the range. These new baskets cover the following indices:

• SPX 500
• NDAQ 100
• Australia 200
• US Growth 1000
• Hong-Kong Large Cap
• Germany Large 100

The strategy applied to these baskets is the same RRG® Momentum+ strategy as used for the initial UK 350 RRG® Momentum+ basket.

These baskets started trading halfway through April, so they had little chance to show performance. That said, the research RRG did for all those baskets showed encouraging results over longer time periods.