As we took a bird’s eye view of the regions and sectors in Quant’s top 100 ranked funds the last two days, there was a remarkable shift in the top 10. The US dominance of those elite ranks has dwindled to only 2 funds, the 1st place IYZ and Louis Navellier’s 10 Green Diamond RWV in 4th. There are 6 emerging markets funds, 3 of which are devoted to China and another BRIC. We noticed this emerging shift when we took a similar bird’s eye view in late June and welcomed the separation from the US market again on July 1st. Our July 17th post also highlighted Asian funds emerging to the top ranks where more of them stand today.
China’s 3rd place FXI and 8th place GXC are familiar to this space but we have not written much about the 10th place iShares FTSE China (HK Listed) Index Fund (FCHI) or the 12th place Guggenheim China Small Cap Fund (HAO). The latter 2 are at their highest ranks yet. All 4 have decently balanced Fundamental, Behavioral and Quality Scores ranging from the 60s to the 80s but weaker Global Theme Scores. Within their Behavioral Scores they also all show elevated implied volatility scores. That is a proprietary ETFG calculation that has proven to be an excellent secondary screen. The other 3 EM funds also have elevated IV scores but weaker technical scores. The 2nd place WisdomTree Emerging Markets High-Yielding Fund (DEM), Powershares’ BLDRS Emerging Markets 50 ADR Index Fund (ADRE) in 7th and SPDR’s S&P BRIC 40 Fund (BIK) in 9th get there on high 70s Fundamental Scores but all three do see improving technical scores.
Our Quant page shows several other EM funds among the top 25 with a bias towards Asia. One thing they all share is higher than average Risk Ratings which shouldn’t surprise anyone. They also have similar price charts that show underperformance for the year but outperformance since the late June bottom. Not many voices were highlighting these names for purchase a month ago; they were more focused on money flows out of the region. Quant seizes such opportunities and today’s message says they are still buyable. It is the kind of message that sets ETF Global® apart from the competition and we are glad you recognize that and can profit from it. As always, thanks for reading and please keep the questions coming to firstname.lastname@example.org.