Wednesday, November 6, 2013

ETFG Quant's Vote



Yesterday was the day to vote here in the United States.  People entered into voting booths to select the candidate who they felt will lead the way in the future.

ETFG Quantsm votes every day on the product that it thinks holds the best prospects for the future and tells the world every morning.  So where did most of the votes go? Taking a snapshot of the top 10 or so funds this morning shows two clear favorites.  All but one fund in the 12 are focused on either the Energy Sector or the Emerging Markets.

Both groups will do very well if global growth continues or accelerates, but is that the message that Quant is giving?  Looking a little deeper into the scores, another trend appears.  The Energy based products have high behavioral scores compared to their fundamental scores, while the Emerging focused products are reversed.  Their fundamental scores are higher than their behavioral scores.

So is the ETFG Quantsm model voting for growth or is it pulling for the underdogs and seeing a reversion to the mean?

Thank you for reading the ETFG Daily Perspectives

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