Geographic Shifts

With domestic equity markets just slightly off all-time highs, some of the prevailing questions to start 2014 seem to surround potential market corrections, timing and international exposure.

In looking at one of these questions, we have seen strong geographic rotations within our models during the last few months of 2013 and to begin 2014.  The beginning of November 2013 started with our Top 10 Ranked Equity ETFs being dominated by international funds.  Specifically, nine of the Top 10 Equity Ranked ETFs at that time were international funds of varying kinds.  As December progressed and year-end approached, our models again began to rotate and balanced these top-ranked ETFs with about half of the list being found outside the U.S.

Now as we start 2014, we again see a rotation back towards global and international ETFs with two of the Top 10 ETFG Quant ranked ETFs being North American and one of those being a domestic fund.

Here’s a quick table of the current Top 10 and their respective Geographic Region:

Ticker	Name	Region	Quant
EWY	iShares MSCI South Korea	Asia-Pacific	71.4
FXI	iShares FTSE/Xinhua China 25	Asia-Pacific	70.9
EWL	iShares MSCI Switzerland Index	Europe	70.2
FVL	First Trust Value Line 100	North America	69.7
ADRE	Powershares BLDRS EM 50 ADR	Emerging Markets	69.1
EEMA	iShares MSCI EM Asia	Asia-Pacific	68.7
SOCL	Global X Social Media	Global	68.0
IDX	Market Vectors Indonesia	Asia-Pacific	67.6
PWV	Powershares Dynamic LargeCap Value	North America	67.2
ADRA	Powershares BLDRS Asia 50 ADR	Asia-Pacific	66.4

Looking at the Top 10 is clearly a narrow sample and does not cover the broad spectrum.  Therefore, we encourage readers to examine the entire ETFG Quant Rankings as well as isolate some of the Categories, Styles and Geographic ETFs in which they may have interest.  This can be done on our ETFG Quant Movers page.

Additionally, each of the Ticker symbols above link to an ETFG Tearsheet on that ETF, so please be sure to click through and check out any of these Top 10 in which you may have interest.

Thank you for reading ETFG Daily Perspectives and have a great week.