Wednesday, August 28, 2013

US Sector Funds Scoring Better

The 2 China funds, SPDR’s GXC and iShares’ FXI, continue to score and perform well, holding 2nd and 6th place today but the other 8 of the top 10 are all US funds, a number we have not seen as high since early July.  Various sectors are represented and we thought it is a good time to take one of our regular looks at the sectors appearing in today’s top 100 ranked funds which on average have outperformed the S&P 500.

With WTI back above $110 per barrel, energy is dancing the war drum beat as Quant’s favorite sector with 9 funds in the top 100 with an average score of 69.7.  Yesterday’s highlighted XOP and XLE remain in the top 10 at 1st and 8th place but IEO has slipped to 21st.  Technology has 8 funds on the list averaging 66.7 on their Quant scores and Vanguard’s Information Technology Fund (VGT) makes the top 10 in 9th place. The materials sector sees 6 funds appearing in today’s top 100 and their average score of 69.1 beats the 8 technology funds as does their average 7.96 Reward Rating.  Only XME makes the top 10 in 4th place with the silver miners in SIL close at 11th.

Those are the favorite sectors as there are only 2 health care and industrial funds on the list and all 4 are Powershares smart beta funds.  Their pharmaceutical fund, PJP, gets 89th place with a score of 65 but their S&P SmallCap Industrials Portfolio (PSCI) that we highlighted August 22nd remains in 5th place with a score of 73.3, an 8.48 Green Diamond Reward Rating and only 2.9 Red Diamonds.  Powershares also has the sole financial fund in the top 100 with smart beta PFI in 80th place.  Consumer staples does a little better with the iShares Dow Jones U.S. Consumer Goods Index Fund (IYK) in 65th place.  There are no funds from the consumer discretionary, telecommunications or utilities sectors making today’s top 100.

As President Obama prepares his scalpel for a surgical strike on Syria, Quant is waving the flag and turning its focus to some oversold US funds.  Currency volatility is also shaking money out of certain emerging markets that is landing back home in the US.  We will save a tour of the international offerings in Quant’s top 100 for another day.  Thank you for checking in to ETF Global® today.

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