Exploring the Timing Stock Selection Ability of U.S. Active Index Fund ETF Based on T-M Model

Based on past research experiences, the passage briefly reviews the important tools used as an important tool for the analysis of stock selectivity ability and market timing ability, The T-M model. Results found that from 2022 to 2023, the funding groups selected do not have the effective ability of timing and stock selection, also the government policies and other external factors during the period affect the whole market trending. The Jensen model and the subsequent T-M model have been widely used to measure whether the return-on-investment index funding portfolio has achieved the expected effect, which has a strong correlation and provides a good calculation standard for investors and funding investment managers holding funding portfolios. The model provides an effective reference for following stakeholders to know the market trend and control their investment risks better.