The news is filled these days with high government officials violating the trust we have placed in them. Wall St. has experienced similar circumstances and advisors know how difficult it was to maintain the trust of their clients when their corporate leaders were exposed as naked emperors. ETF Globalsm has over 100 years of combined financial services experience within our management so we know what advisors and mangers need and reliable recommendations are high on that list. They can rely on our Quant and Green Diamond Reward models because we fully disclose performance on a monthly basis. We will cover the latter today which has been posted with prior months under the Analytics button.
One fund gets the 10 Green Diamond Rating each day and we typically see roughly 15 9s, 3 or 4 times as many 8s and the bulk of the population clustered in the 5-7 range. Grouping them by their whole numbers, we break out the average performance of the 7s and higher on rolling 1, 2 and 3 month bases (using a constant 21 day month). The Market Vectors Gold Miners Fund (GDX) was the daily 10 Diamond fund on several days earlier this year and its spring swoon is why the average return on the 10s is lower than the 9s. Regular readers also know our numbers looked much better earlier this year before our models turned their focus towards US broad market funds like those tracking the S&P 500 to which we are comparing. It is not easy to outperform the S&P 500 when that is what you are recommending but we beat the benchmark more than 60% of the time and the stance has paid off as the rest of the world has been left behind this year. We are recently seeing some separation from the US broad market with technology and energy sector funds scoring better. Today’s 10 Green Diamond fund is the smart beta First Trust Mid Cap Growth AlphaDEX Fund (FNY) which has mostly kept pace with the market since its only other 10 diamond day on April 2nd.
We will put our performance up against anyone else’s but nobody else discloses their performance. The ETFGsm quantitative models have proven adept at consistently identifying the best areas of the international equity markets for the intermediate term, even if we get an occasional disappointment like GDX (which is scoring better again.) We tell it to you straight with no taking the fifth, it is how we strive to earn your trust for which we are grateful. We will cover Quant next week, thanks for reading and happy Father’s Day.