In late December we noticed some technology funds creeping up into
the mid teen rankings and speculated as to whether they are diamonds in the
rough about to make it into Quant’s elite ranks. Today those elite ranks see 3 technology
funds in the top 10.
Slightly trailing the market year to date, the iShares Goldman
Sachs Technology Index Fund (IGM) is still buyable and has only seen higher
ranks since it reached 17th place in that December 28th
post, it’s at 6th place today. As was the case a few weeks ago,
Fundamentals are still responsible for the strong rank driven by high cash flow
and yield scores. It had an 82.5
Fundamental Score then and it’s at 82 today.
The behavioral side is not as strong with low 60s in the technical and sentiment
categories. The iShares Dow Jones U.S.
Technology Index Fund (IYW) wasn't mentioned in that December 28th
post but it has risen to 8th place today. A very high 90.2 Fundamental Score gets it
there but the flip side of a cheap fund is that it hasn't been performing well. We don’t write about too many funds with a Technical
Score as low as 27.9 but that has helped it garner a very decent 77 Sentiment
Score so maybe this one is due to outperform.
Rounding out our list of three today is the iShares PHLX SOX Semiconductor
Sector Index Fund (SOXX) which also didn’t make our December 28th
post but is in 10th place today.
Here we see a better balance of scores with a decent 78.2 on the
Fundamental side matched by a good 67.2 on the Behavoiral side. It has been scoring well since early November
and its performance since then has justified its high score.
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