Crossing onto this side of the Galactic Alignment last December 21st,
ETF Globalsm announced a commitment to transparency in quantifying and reporting
on the performance of our ratings.
Closing out the second half of the year in which we launched, our models
had directed our users to the opportunities in Europe and emerging markets that
few others had recommended. When
we said our recommendations could lead you to outperform the S&P 500 by a
wide margin we did not know the shift
the market was about to take. But
by the time Santa was steering his sleigh clear of the fiscal cliff, Quant
recognized the forthcoming shift. Our December 31st post was clear
in recommending the US market that lifted off on this year’s first trading day
and has led the world in 2013. The model
has been weighted towards US broad market funds all year with ETFs exposed to the
S&P 500 and various Russell market cap segments dominating the ranks.
Outperforming that benchmark by a wide margin has become
impossible when that is what we are recommending but despite spending almost
half our existence in that posture, out top ranked funds continue to outperform. We group them by Quant’s top 10, 25, 50 and
100 ranked equity ETFs each day, average their performance over the coming 1, 2
and 3 months, and compare to how the S&P 500 did in those same rolling
periods. The ETFGsm average has beaten the benchmark a majority of the time, albeit
at a narrowing margin. You can see each
month’s performance update
on the publicly available part of our website under the ETFG Quantsm button.
Today we see iShares funds tracking the large cap Russell 1000 Value
index (IWD) and small cap Russell
2000 Growth index (IWO) in
the top 10 maintaining that US broad market exposure but also some technology
and energy sector funds. Not many foreign
funds are catching Quant’s attention but the Market Vectors Egypt Index Fund (EGPT) sees it first trip to
the top 25 at 24th place today on a strong 85.1 Fundamental Score. The correction in Japan has boosted the iShares
MSCI Japan Index Fund (EWJ)
up to 13th place driven by a solid 78.4 Behavioral Score. We welcome the separation from the benchmark these products will
provide for our coming performance reports and in this new era
of investing, we thank you for being part of ETF Globalsm.
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