On March 26th we took a look at the foreign funds in Quant’s top 100 ranks and things look similar today. There were a scant 16 funds devoted to regions other than the US last month and the same small number appear today, mostly the same names with a few exceptions. Quant clearly continues to favor the broad US market but does have some ideas for those who need to fill their international allocation.
The iShares MSCI Australia Index Fund (EWA) topped out in mid March but has held up better than most regions and is the top ranking foreign fund today at 13th place. Canada’s EWC hasn’t held up as well over the last month but is in 15th place and Spain’s EWP is in the middle both performance wise and at 14th place. EWP has done better over the last month than Germany’s EWG and Frances’s EWQ which rank in 36th and 56th respectively and better than the pan European FEZ in 35th place today. Switzerland’s EWL provides that rare foreign exposure that has kept pace with the US market recently and it holds 23rd place today with a decent 78.4 Fundamental Score. The iShares MSCI EAFE Index Fund (EFA), with more than 20% of AUM in Japan, has also been insulated from the worst of the world selloff recently. Its tear sheet shows Europe with lesser weights but they add up to more than 27% exposure to the common currency and it holds 83rd place this morning. Japan has not been scoring well generally but the iShares MSCI Japan Small Cap Fund (SCJ) has a steep mountain chart and mid 60s Quant scores that get it into the top 100 at 92nd place. China’s FXI performed so well for us last fall and is the highest ranking Asia fund today at 18th place followed by South Korea’s EWY in 47th and the Developed Asia ex-Japan EPP in 52nd. The iShares MSCI Emerging Index Fund (EEM) was also a big winner for us last fall and is climbing the ranks again at 26th place today. Quant may smell a bottom in the emerging markets as a few others make the top 100 with GMF, VWO and DEM in 67th, 68th and 77th place.
With only 16 foreign funds in the top 100, Quant’s US focus is about as pronounced as it has been since our inception last summer. The model did a great job picking a wide array of international funds that provided outstanding performance in 2012 but 2013 has been a US year with the exception of Japan’s central bank fueled run which has yet to score well. The ETFGsm models continue to predict outperformance for the broad US market but it’s always good to look around. Thank you for looking around at ETF Global, send any questions to firstname.lastname@example.org.