Today we do what no other ratings service does, we report on the performance of our ratings. Actually we will cover our Quant rankings today and our Green Diamond Reward Ratings tomorrow. Found under the ETFG Quant® button, the monthly performance reports go back to December 2012 but the data goes back to July 2, 2012. It’s been one full year and we are not reporting the results on 7/11 because we have been lucky, Quant has been too consistent to be lucky. We report the results grouped by Quant’s top 10, 25, 50 and 100 ranked funds each day where we average their performance over 1, 2 and 3 months and compare to the S&P 500 performance over the same rolling periods. We welcome this report because it includes selections made in May which is when we began to see some separation from the US broad market funds that have dominated the ranks so much this year.
Despite being weighted towards the S&P 500 and similar funds for half of our existence, we have beaten the benchmark in more than 53% of the datasets; the other times were mostly when the benchmark was leading the international markets and our rankings. Even with that, our top 10 funds have outperformed the S&P 500 by more than 25% for one month on average. Quant has consistently kept our users in the sweetest parts of the international equity markets with a glaring exception of including gold miners this past winter. That is why our 3 month numbers look worse than our 1 and 2 month but those data points are slowly getting diluted with Quant’s regular outperformance. The model’s affection for energy funds had been looking like a mistake at times but with oil breaking to new highs it is looking more prescient now. Today’s 1st place SPDR S&P Oil & Gas Exploration & Production Fund (XOP) continues to lead the ranks and while it has lagged slightly, high oil prices should support it and Bernanke sounds like he’ll support the oil price.
A glance at the Quant page will show a variety of sector and theme funds which we expect will widen our outperformance numbers now that the top ranks are not so dominated by US broad market funds. The US still rules the ranks but Quant is highlighting some interesting selections therein. Take a look each day and thank you for taking a look at ETFG® Daily Perspectives.