Wednesday, October 3, 2012

We enhanced our algorithm yesterday which may have contributed to a little more turnover than usual but Quant’s song remains the same.  That ultimate heavy metal, gold, sees its Market Vectors Gold Miners Fund (GDX) at 8th place with 2 energy funds, XLE and XOP, also in the top 10.  The iShares S&P 500 Index Fund (IVV) made 7th place while its friends, VOO and SPY, barely missed the top 10 at 11th and 12th respectively.  Other than those, Quant wants to go over the hills and far away to Europe and Asia.  The SPDR S&P China Fund (GXC) and DJ EURO STOXX 50 ETF (FEZ) are the hot dogs today in 1st and 2nd place while iShares also has their FTSE/Xinhua China 25 Index Fund (FXI) and their MSCI Spain Index Fund (EWP) getting a whole lotta love from Quant in 4th and 6th place respectively.  Of the two China funds, a glance at our tear sheet for each will show the higher rated GXC having more exposure to countries outside of mainland China so FXI is the purer play on the middle kingdom.  Quant tells us who is going to outperform the market not what the general market is going to do so if the levee breaks the large liquid sectors should provide some safe haven as the rest of the market gets trampled underfoot. Don’t get dazed and confused by the international equity markets, just check in daily with ETFGlobal and Quant will keep you on the stairway to investing heaven.

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