Thursday, September 12, 2013

Europe's FEZ Finds Quant’s Love

All in the run of one day, Quant looks all around the world for the equity ETFs with the highest probability of outperformance.  As time goes by we had some low rides but it has mostly been good dancing music.  Today we see one high steppin’ hip dressin’ fella who brings back our yesterday returning to the top 10.  The 6th place SPDR DJ Euro STOXX 50 Fund (FEZ) first made that elite group in August 2012 and was one of our top performers after the month it spent there.  We wished it could do it again when it returned for a shorter stay in November and it made our lives easy living.  What a groove. But falling in love is a no no with quantitative analysis and FEZ began to rank lower towards year end and into 2013.

It had staying power and remained in the top 100 for most of the winter but did not seem to know which way is up and walking in the rain with the one it loves is not Quant’s thing.  It fell out of the top 100 in May and got as low as 224th place on June 16th, a few days before a 5% drop to those June 24th lows.  Quant’s affection for the emerging markets has been most pronounced since then but FEZ came out of the shadows with a 128 position move to 49th place on July 9th and has gained more than 12% since then and gradually moved up the rankings.

If you follow that you will see that Quant has called FEZ well over the early year+ here at ETF Global®.  It says the time is right to put it back in your mix so take a good look.  Time will tell if Europe is alive and well, we have not seen many individual European country funds in the top ranks, Austria and Sweden get 19th and 25th place with EWO and EWD.

If you are a registered user of ETF Global®, welcome aboard, if not click here for a trial, it’s free.  When you step into our secret garden you will see how we make it happen.  Managing portfolios is getting harder all the time but ETFGsm will keep you in a mellow mood.  Thank you for turnin’ on and tunin’ in, we can’t get enough of your love.  Happy Birthday to the late Barry White.

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