Quant Gets More Selective Internationally

Quant continues to wave the flag with 8 US ETFs in the top 10. The two China funds, 3^rd place GXC and 8^th 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 84^th place and Japan’s FJP in 72^nd.   iShares’ AAIT ranks 81^st with about a third of AUM in Japan.  If you want Asia without Japan, WisdomTree’s Asia Pacific ex-Japan Fund (AXJL) holds 19^th place and emerging Asia fund GMF ranks 23^rd.  Country specific Asian funds include South Korea’s EWY in 12^th place with low risk at 2.6 Red Diamonds, Indonesia’s IDX and EIDO in 74^th and 95^th, and Taiwan and Phillipines tied at 89^th place with EWT and EPHE. Broader emerging markets funds are led by ADRE in 14^th place; GMM, EEM and EELV in the top 50; and Vanguard’s VWO at 68^th.   Sticking with the EMs, we see Egypt’s EGPT holding its recent outperformance and 51^st place today.  Peru gets 80^th place with EPU and Russia’s RSXJ and ERUS rank 89^th and 93^rd.

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

The global funds include SIL in 9^th place and recently highlighted SKYY in 10^th 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 ETFG^sm Tearsheets carefully and please send any questions to support@etfg.com .