Yesterday we looked at the geographic representation in Quant’s 100 top ranked funds and today we will look at the sectors. There are 38 ETFs representing 8 sectors with financials and utilities not having any members in the group that has outperformed the S&P 500 on average.
There is only 1 telecom fund but it is the 1st place iShares Dow Jones U.S. Telecommunications Index Fund (IYZ) with a 9.47 Reward Rating and a low 3.52 Risk Rating. That is clearly the favorite fund but technology may be the favorite sector with 7 funds that have an average Reward Rating of 7.99 led by iShares’ IYW with 8.76 Green Diamonds and similarly low risk. The 8 energy funds are close behind with 7.39 Green Diamonds on average and the 3rd place SPDR S&P Oil & Gas Exploration & Production Fund (XOP) getting above 8 with market average risk. The 12 basic materials funds also average above 8 Green Diamonds but they score a little lower in Quant. The reason is that risk is separate in the Diamond model and these carry a high 6.18 average Red Diamond Risk Rating. The gold miners in 8th place GDX lead the group that contains other higher risk names including 4 other precious metals funds. The consumer sectors each have 1 name; INCO is the higher rated and higher risk representing India’s cyclical sector while XLP gets less than 7 Green Diamonds but typical of a staples fund also has low risk with only 1.52 Red Diamonds. Industrials and health care each have 4 funds spanning the top 100 ranks led by 13th place PSCI and 21st place XLV. The lower ranked health care fund does better than the small cap industrials in the Diamond model.
In the interest of space we did not list every ticker but you can see them all in the ETFG Scanner under the Research button. Select the fields you like displayed from the Filter button and sort the output by either the Quant or Reward columns to see the top ranked funds up top. You can also export the full output to Excel. We can assure you it will provide a better vision of the ETF marketplace than Anthony Weiner’s vision for New York (of which we have seen too much already). As always, please send any questions (not of a personal nature) to firstname.lastname@example.org.