Traders thought it was the last two days, but today is the year’s
longest, happy summer solstice. Recent volatility
forces us to shine some sunlight on our portfolios to see what has held up
best. ETFs are accounting for a larger percentage of
market volume and ETF Globalsm has identified the best
ones through a few shifts over the past 12 months. It was Europe last summer and emerging
markets in the fall before our predictive models focused on US broad market
funds since last December. Those have
been among the best on the way up as well as the correction over the last month
and managers using our selections are outperforming their peers. Our sector selections have been mostly
limited to energy and technology and while the former have lagged somewhat, the
technology names have mostly outperformed.
No other ETF has dominated our Green Diamond Reward model like the PowerShares
Dynamic OTC Portfolio Fund (PWO)
which is today’s 10 Green Diamond fund again.
With half of AUM in technology, this smart beta fund makes
quarterly selections from the NASDAQ and
our June 12th post takes you through the various times we have highlighted
it. It got its first 10 Green Diamond
rating on January 4th and has almost doubled the S&P 500’s
return since then. You would be hard
pressed to find a time from any of its 51 days atop the Diamond model when it
has not outperformed the market. On many
of those days, it dominated the model so much that there were no 9 Green
Diamond funds, forcing us to shine some sunlight to make sure we were
calculating correctly. It dominates to a
similar extent today as there are only a few 9s which you can see by sorting
the ETFG Scanner output by Reward. A typical distribution would see about a dozen
9s.
If you have yet to consider a smart beta product, PWO is worth a look. Check out the ETFG Tear Sheet for it or any exchange
traded product and as you shine some sunlight on your equity ETFs, see how they
score in Quant and our Green Diamond Reward models. You won’t be disappointed with their proven
selection processes. Please send questions you have on anything you see at ETFGsm to support@etfg.com, we are
here to help. Have a nice weekend, we
have all earned it this week.
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