Thursday, August 29, 2013

Quant Gets More Selective Internationally

Quant continues to wave the flag with 8 US ETFs in the top 10. The two China funds, 3rd place GXC and 8th place FXI, are lagging this week but still outperforming nicely since breaking back into the top ranks last month.  They lead the thinning ranks of foreign funds in today’s top 100, with 27 others making the list and an additional 11 Global funds.

They are weighted towards Asia with another China fund, PGJ, in 84th place and Japan’s FJP in 72nd.   iShares’ AAIT ranks 81st with about a third of AUM in Japan.  If you want Asia without Japan, WisdomTree’s Asia Pacific ex-Japan Fund (AXJL) holds 19th place and emerging Asia fund GMF ranks 23rd.  Country specific Asian funds include South Korea’s EWY in 12th place with low risk at 2.6 Red Diamonds, Indonesia’s IDX and EIDO in 74th and 95th, and Taiwan and Phillipines tied at 89th place with EWT and EPHE. Broader emerging markets funds are led by ADRE in 14th place; GMM, EEM and EELV in the top 50; and Vanguard’s VWO at 68th.   Sticking with the EMs, we see Egypt’s EGPT holding its recent outperformance and 51st place today.  Peru gets 80th place with EPU and Russia’s RSXJ and ERUS rank 89th and 93rd.

Moving up the development scale to Europe, we see 4 specific country funds carrying lower than average Risk Ratings.  Austria’s EWO ranks 59th, ENOR and EWD from Norway and Sweden rank 74th and 84th, and the Netherlands has EWN in 77th place with a low 2.83 Risk Rating.  Pan European FEZ has been ranking better and outperforming since mid July and holds 33rd place while FEU has outperformed to a lesser extent and is tied at 100th place today.  iShares EFA has a heavy European weighting at 51st place.  Canada’s EWC has been in the top 100 more often than not and holds 30th place today.  It has low risk at 2.55 Red diamonds but also low return.

The global funds include SIL in 9th place and recently highlighted SKYY in 10th with other materials, energy and theme funds among the group.  As currency markets and geopolitics dominate the news, we have seen US funds reemerge into the upper ranks but Quant’s emerging markets stance remains at a lesser and more specific extent.  So check the Quant scores and ETFGsm Tearsheets carefully and please send any questions to .

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