If you’d followed the strategy since 2009, you’d have beaten the Dow Jones in six out of those 10 years. That’s not bad at all for such a simple strategy, though the number falls to five out of 10 when you compare it to performance of the broader S&P 500 index. The strategy also tends to go through good patches and bad patches: for instance, it performed very poorly during the GFC, and in 2020 yielded -12.6%, compared to the Dow’s 7.2%, and the S&P 500’s 18.4%.
That poor 2020 performance means on a 10-year-basis, the Dogs strategy has underperformed against both indices, posting an average annual return of 9.2% versus 11.4% for the Dow and 12.3% for the S&P 500. Since 2000, the Dogs have underperformed against the other two indices slightly more than half the time, tending to underperform during crises in particular.