Top 500 High-Volume Stocks Strategy Surpasses Benchmark with 166.71 Return as Fastenal Ranks 453rd in 270M Trade

Fastenal (FAST) closed July 30, 2025, with a 0.41% decline, trading on $0.27 billion in volume that ranked it 453rd in market activity for the day. The stock's performance followed mixed market conditions and sector-specific dynamics.

A volume-based trading strategy involving the top 500 stocks by daily liquidity has shown compelling results since 2022. The approach generated a 166.71% total return compared to the benchmark's 29.18% gain, reflecting a 137.53% excess return. This strategy achieved a compound annual growth rate of 31.89%, with a Sharpe ratio of 1.14 highlighting its strong risk-adjusted performance. The consistency in capital appreciation over the period underscores the strategy's effectiveness in capturing short-term market movements.

Historical data indicates that high-volume stocks held for one trading day can outperform broader indices. The 31.89% CAGR demonstrates the strategy's ability to compound returns consistently, making it a notable alternative for investors seeking liquidity-driven opportunities. However, the approach's success relies on timely execution and market structure dynamics that may vary across timeframes.

The strategy of buying the top 500 stocks by daily trading volume and holding for one day yielded a 166.71% return from 2022 to the present, significantly outperforming the benchmark return of 29.18%. The strategy's excess return was 137.53%, and it achieved a CAGR of 31.89%. This indicates the strategy's robust performance and strong risk-adjusted returns over the period.