Tuesday, February 19, 2013

A couple of weeks ago we highlighted the Market Vectors Gold Miners Fund (GDX) mentioning it as a disappointment since it ranked well last fall.  It fell out of the top ranks but came back last month and is disappointing again.  We don’t bring it up today merely as a Lenten sacrifice in humility.  We need to highlight it as it has remained in the top 10 since then and has been the sole fund with the 10 Green Diamond Reward Rating for the past 5 days.  Its scores are remarkably stable since that January 30th post so we don’t need to review them again.  Suffice to say it ranks so high due to excellent fundamentals and high sentiment scores.

We also want to highlight it in the context of our monthly performance updates.  The February performance files on Quant and our Green Diamond Reward Ratings have been posted on the publically available part of our website.  If you have been following them month to month you will notice that our sizable outperformance vs. the S&P 500 became less sizable last month.  GDX hasn’t helped as it has declined in the face of an impressive rally.  However a bigger reason why that gap has closed slightly is because the three S&P 500 ETFs have been among our top rankers since late last year.  Having three funds in the mix that track that benchmark makes it more difficult to beat it, especially when the other top ranks are populated by similar US large cap funds.  Beat it we did though.  If you take our top ranked funds each day, grouped as we have on those reports, they have basically doubled the benchmark, outperforming more than 85% of the time since our July 2nd inception.  Excuse our lack of humility but what other service can say that about its ratings?

We’ll have more exciting news in coming days about the latest developments at ETF Global and how we are making our models even more accessible to the investing public.  Quant  still favors US large caps and the low risk funds continue to dominate the top ranks, GDX being a notable exception with its 5.34 Red Diamond Risk Rating.  Despite that, the average risk rating of the top 10 is 3.5 compared to 3.83 for the top 100 and 4.57 for all equity ETFs.  We’re hoping for a reversal in GDX at these levels that have provided support in the past.  Thanks for checking in today and don’t forget to check back for our announcement in coming days.

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