Monday, December 31, 2012

Back on November 14th we reported Quant’s clear message to look away from the USA as 9 of that day’s top 10 were foreign funds.  On average, that group gained 8.04% since then and all ten have exceeded the 3.46% gain in the S&P 500.  As we close out 2012, we bring this old acquaintance to mind as Quant’s top ranks are now weighted towards the US.
We look to 2013 with SPDR’s S&P China Fund (GXC) sitting atop the ranking as it has so often throughout this fourth quarter, but 8 of the other top 10 are US funds.  The 2nd place iShares Goldman Sachs Technology Index Fund (IGM) is typical of large cap US focused funds scoring better after wandering many a weary foot in recent months.  That one’s highest weighting is 8.25% in Apple Inc.  Today’s 3rd place Vanguard S&P 500 Fund (VOO) has 4.84% in Apple and the 5th place iShares S&P 500 Index Fund (IVV) and the more widely held SPDR S&P 500 Fund (SPY, 16th place) have 3.81% in that beleaguered equity.   Among the favored sectors we see the iShares Dow Jones U.S. Basic Materials Index Fund (IYM) in 6th place followed by the SPDR Industrial Select Sector Fund (XLI) in 7th and the iShares S&P 500 Value Index Fund (IVE) in 8th place.  None of those 3 hold Apple which you can see by sorting their constituents by Ticker on their tear sheets.  If you can’t decide on one of those for a dance partner, consider the Vanguard Total Stock Market Fund (VTI) in 9th place today or the almost as broad iShares Russell 3000 Fund (IWV) closing out the top 10.  We would be remiss to not mention today’s 4th place iShares MSCI Turkey Investable Market Index Fund (TUR) which has earned its place in the upper echelon where it’s been since we made fun of it on Thanksgiving.

That gives a good look into how the model is positioning in front of the fiscal cliff and all the other issues facing the New Year.  It has run the slopes and picked the daisies fine as it has since we inaugurated on July 2, check our performance pages which will get their monthly updates in the next few days.  If you have been using ETF Global you know how good the performance has been and we thank you for spreading the word, please follow us on Twitter and get this blog delivered to your inbox each morning. 
We’re excited about 2013 and with a trusty hand, 
filling your cup with more kindness yet, 
for auld lang syne. 

No comments:

Post a Comment

Note: Only a member of this blog may post a comment.