On April 12th we noticed a potential problem in our Green
Diamond model as there were no 9 Diamond funds that day and the issue repeated the
next day. When it happened again in May,
we knew it was not a problem but a case where the 10 Green Diamond fund
dominated the model to such an extent that its next closest ranker could not
get above 8 Green Diamonds. The PowerShares
Dynamic OTC Portfolio Fund (PWO)
went onto to skew the model in such a way 13 times. If you bought on any of those days you are
happy now being up more than 14% since April 12th versus the S&P’s
6%. Sorting today’s ETFGsm Scanner output by Reward, you will see the issue has
repeated again.
This time it is with the SPDR S&P China Fund (GXC) earning the 10 Green
Diamond distinction for the 10th time since July 12th. When we highlighted it on August 8th
we said it looks like it is just getting started and Quant says you still have
a chance to get on board. Its 98 Fundamental Score is the best out of all 724
equity ETFs getting scored today with all 4 subcategories getting high 90s. 158 other funds score better than its strong 73
technical score but all of those have sentiment more bullish than GXC. At 73.9, only 11 other funds have better
sentiment readings but they tend to have technical readings in the 40s and 50s. It is a nice opportunity when both Behavioral
subcategories score so well. Those are
the scores that account for the Green Diamond Reward Rating and no other fund
comes close today.
GXC’s 5.67 Red Diamond Risk Rating is higher than average driven by
an 8.11 Deviation score which is well explained with a look at its chart. After
a great run last fall, it dropped out of the top 100 and began a 20% correction
a few weeks later but looks ready to do it again. We hope it performs as well this time or as
well as PWO which has dropped out of the top 100 on poor sentiment. PWO’s
portfolio has also changed so if you still own it consider swapping into GXC or
a better scoring smart beta fund. Only ETF
Global® brings you such actionable opportunities and we thank you for
checking in to see them each day.
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