Tuesday, March 12, 2013

As the Swiss Guards protect the privacy of the papal conclave in the magnificent Sistine Chapel, we have a Vanguard fund in today’s top 10.  No funny looking suit on the 7th place Vanguard Growth Index Fund though.  Replicating the MSCI US Prime Market Growth Index, VUG holds all 410 positions at their respective index weights.  While those Swiss guards wear the traditional Medici blue, red and yellow, VUG’s tear sheet has pie charts resembling the myriad colored ribbons of a US general’s uniform.

Its 33% weighting in info tech with almost 9% in Apple hasn’t hurt performance too much.  Year to date it is up about 8% compared to the S&P 500’s 9% but it is tracking that benchmark tightly on this latest leg up since February 25th.  The other colors on those pie charts represent holdings in all 10 S&P sectors where consumer discretionary, industrials, consumer staples and health care also have weightings above 10%.  The constituent list shows a who’s who of US large cap companies and you will have to dig deep before seeing a name you don’t recognize.  All that diversification combined with Vanguard’s heft provides a high Quality Score of 90.9 and its other metrics are formidable too.  Fully participating in the explosive broad market US rally translates into a very nice 71.9 technical score which hasn’t hurt its also strong 70.9 Fundamental Score.  What’s new today is the higher than normal 68.9 sentiment score getting a boost from a jump in its put/call score up to 93.  All that figures into VUG’s striking 9.27 Green Diamond Reward Rating with only 3.01 Red Risk Diamonds, keeping with Quant’s current low risk theme.

Our prayers are with those cardinals in the Sistine Chapel as they choose the next leader of the world’s more than 1 billion Catholics, but investing requires more than faith.  It requires vigorous self examination of one’s objectives and risk tolerance and an asset allocation strategy that fits both.  Once you decide on your equity allocation, Quant provides a proven tool for achieving your objectives.  Our top ranked funds consistently outperform the rest and Quant points to the Vanguard Growth Index fund (VUG) as one of those today. For your allocations to other asset classes, our Red Diamond Risk Ratings will help you keep within your tolerances.   As those Swiss Guards support the Vatican conclave, ETFGsm is pleased to support your investment decisions.  If you need any guidance beyond what you see on the site please contact us at support@etfg.com  for personal help. At ETF Globalsm we appreciate the faith you place in us.

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