Thursday, April 18, 2013

Like our Quant model, we also report on the performance of its sister Green Diamond Reward model covering all equity ETFs.  Some of Quant’s risk metrics are incorporated in our Red Diamond Risk model covering all products but that is reflective not predictive, so we don’t assign performance to it.  Like Quant, the funds that have earned the highest Green Diamond Reward Ratings have an excellent record of outperformance that you can see on the monthly reports under the Analytics tab.  Each day, one fund earns all 10 Green Diamonds which today happens to also be Quant’s 1st place SPDR S&P 500 Fund (SPY).  Having the same fund lead each model is not typical but the general makeup of the top ranks is typically similar.

The distribution of Green Diamonds below 10 varies slightly with the shape of each day’s bell curve and 10 funds getting 9 Green Diamonds today is a bit low while the 58 that earn 8 and 128 that earn 7 are more typical numbers.  Those 9s are all US today except for Canada’s EWC but unlike Quant we see more sectors represented in this top group which you can sort by on the ETFGsm scanner.  If you must venture off the US island in the storm there are plenty of ideas among the 8s and 7s to fill out your international allocation. 

The performance report shows that the 7s beat the S&P 500 on average, but by a lesser amount than the 8s which get beaten by the 9s and all return less on average than the 10.  Today’s top ranking SPY traveled through all those levels in recent months.  It was a 7 Green Diamond fund on December 3, before the models turned their focus to the US market; it then earned mostly 8s in January and 9s in February when it also earned 10 on 4 different days.  4 days in March saw it get 8 Green Diamonds with 9s for the rest of the month.  It’s been 9s all April except for last Friday and Monday with high 8s and today’s 10.

2013 has seen those high Diamond Ratings consistently assigned to various US broad market funds which makes our outperformance versus the S&P 500 all the more impressive.  However, any day sees a multitude of choices across regions and sectors rating 7 Green Diamonds or better.  They won’t all outperform but the performance reports speak for themselves. No other ratings provider offers a selection process as dynamic and none of them report on their top rated funds the way ETF Global does.  Thank you for helping us spread the word.

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