Back on November 14^th we reported Quant’s clear message to look away from the USA as 9 of that day’s top 10 were foreign funds.  On average, that group gained 8.04% since then and all ten have exceeded the 3.46% gain in the S&P 500.  As we close out 2012, we bring this old acquaintance to mind as Quant’s top ranks are now weighted towards the US.

 

We look to 2013 with SPDR’s S&P China Fund (GXC) sitting atop the ranking as it has so often throughout this fourth quarter, but 8 of the other top 10 are US funds.  The 2^nd place iShares Goldman Sachs Technology Index Fund (IGM) is typical of large cap US focused funds scoring better after wandering many a weary foot in recent months.  That one’s highest weighting is 8.25% in Apple Inc.  Today’s 3rd place Vanguard S&P 500 Fund (VOO) has 4.84% in Apple and the 5^th place iShares S&P 500 Index Fund (IVV) and the more widely held SPDR S&P 500 Fund (SPY, 16^th place) have 3.81% in that beleaguered equity.   Among the favored sectors we see the iShares Dow Jones U.S. Basic Materials Index Fund (IYM) in 6^th place followed by the SPDR Industrial Select Sector Fund (XLI) in 7^th and the iShares S&P 500 Value Index Fund (IVE) in 8^th place.  None of those 3 hold Apple which you can see by sorting their constituents by Ticker on their tear sheets.  If you can’t decide on one of those for a dance partner, consider the Vanguard Total Stock Market Fund (VTI) in 9^th place today or the almost as broad iShares Russell 3000 Fund (IWV) closing out the top 10.  We would be remiss to not mention today’s 4^th place iShares MSCI Turkey Investable Market Index Fund (TUR) which has earned its place in the upper echelon where it’s been since we made fun of it on Thanksgiving.

That gives a good look into how the model is positioning in front of the fiscal cliff and all the other issues facing the New Year.  It has run the slopes and picked the daisies fine as it has since we inaugurated on July 2, check our performance pages which will get their monthly updates in the next few days.  If you have been using ETF Global you know how good the performance has been and we thank you for spreading the word, please follow us on Twitter and get this blog delivered to your inbox each morning. 

We’re excited about 2013 and with a trusty hand, 

filling your cup with more kindness yet, 

for auld lang syne. 

Some technology funds are showing up on our screens today with strong Fundamental Scores but mediocre behavioral measures.  The iShares Goldman Sachs Technology Index Fund (IGM) is in 17^th place with a very nice 82.5 Fundamental Score.  On the behavioral side we see an OK 61 Technical Score and a below the mean 49.6 Sentiment Score.  The iShares S&P Global Technology Index Fund (IXN) is even better fundamentally with an 89.5 score in that category but 59.4 and 38.5 in the technical and sentiment categories that all combine to place this fund in Quant’s 18^th position.  Vanguard gets 19^th place with their Information Technology Sector Fund (VGT).  This one is better on the behavioral side with technical and sentiment reading s of 54.4 and 64.9 but a lower Fundamental Score of 75.3, still decent.   Are these three diamonds in the rough about to be discovered by the rest of the market or just value traps?  The New Year will tell but Quant’s track record suggests the former.   Happy weekend and Happy New Year!

Quant still likes those European funds that we haven’t mentioned in a while.  The iShares MSCI Spain Index Fund (EWP) gained 40 positions overnight into 6^th place on higher Technical and Sentiment Scores. Also gaining is the SPDR DJ EURO STOXX 50 Fund (FEZ) up 46 places into Quant’s 19^th position, again on improvements in both Behavioral categories.  Tied at 19^th place is the iShares MSCI France Index Fund (EWQ) which actually dropped 8 places on a lower Sentiment reading.  Some people include it and some don’t but Turkey wants to join the EU.  Readers suffered through our Thanksgiving puns on the iShares MSCI Turkey Investable Market Index Fund (TUR) and it has been near the top ever since, it’s in 2^nd place today.  We’re keeping it short this week so that’s enough for now, thanks for reading.

In case you are doing anything other than year end administrative chores, Quant has a message for us today. The SPDR Materials Select Sector Fund (XLB) has spent most of the past few months in the top 50 with an occasional peek into the top 25 but the past week has seen it solidify its position in that group of 25 with a rank of 16^th place today.  We also see the Global X Silver Miners Fund (SIL) with a big 152 place jump into 40^th place and other basic material funds also scoring better today.  With central banks around the world in a race to the bottom regarding exchange rates perhaps the market is getting ready to play an inflationary theme.  Most desks have skeleton crews so we’ll see if that theme plays out when full staffs return next week.  We hope to be able to button our pants by then but will keep you apprised of any movement in the model in the meantime.  Enjoy the holidays and thanks for checking in today.

Quant likes the S&P 500 even more now that it’s 1% cheaper. The iShares (IVV) and SPDR (SPY) products that track it are in 2^nd and 4^th place with today’s top rank going to the iShares S&P 500 Value Index Fund (IVE). The rest of the top ranks are mostly the familiar names from the last couple of weeks but making a return to the top 25 is the SPDR S&P Metals and Mining Fund (XME) jumping 110 positions after Friday’s action into 20^th place on an improving Technical Score.  It was last in these upper ranks in late October and early November.  We highlighted it on October 23^rd pointing out that XME is more of an economically sensitive industrial metal fund than the silver and gold now adorning our Christmas decorations.  XME has outperformed since then and getting back into the top 25 suggests an economically sensitive posture to the market may be in order.  Washington politicians tying themselves in fiscal knots may be just what the economy needs.  Our last economic boom coincided with a balanced budget, so maybe Quant sees the fiscal cliff as our best shot at getting back to that.  Or maybe Quant sees status quo in Washington as meaning the money will keep flowing to corporate America.  We would caution that value is beating growth, a more defensive posture.  We’ll ponder Quant’s mysterious messages over some egg nog and will be back to box it up for you Wednesday morning.  Until then, God rest you merry ladies and gentlemen, we wish you comfort and joy.

The AP reports the shamans, sufis and swamis gathered on the Yucatan Peninsula declared the “New Era” began at 5am this morning.  Assuming that dawning light on the eastern horizon is the sun and not Nibiru, it looks like our galaxy made it through the Milky Way.  We can’t say we’ll be here to do it again in 26,000 years but we’ll remember this one for what ETFG has simultaneously announced.  In a commitment to transparency, we have quantified the performance of our predictive scores and ratings and posted the results on the publicly available area of ETF Global.  You can find the performance reports on Quant and our Green Diamond Reward Ratings anytime under the ETFG Quant and Analytics buttons.  The links bring glad tidings and we will repeat the sounding joy every month.  Suffice it to say, if you use ETFG to support your investment decisions you will likely outperform the S&P 500 by a wide margin.

In the new era of investing, we have brought you access to an institutional level quantitative algorithm as good as the ones that made billionaires.  No black box here though, you can read all about it in our Quant WhitePaper which is also under the ETFG Quant button.  Our clients can see all the scores in the 15 categories and their 4 sections on the entire universe of over 800 equity ETFs every day.  Institutions use our various scores in their own models and advisors rely on our ratings when selecting appropriate investments for their clients.  Professional and self directed investors alike have found there is no other source that provides such reliable performance.   Compiling all the measurements that drive the models also enables us to offer our clients access to unparalleled data on the world of exchange traded products.   All that, plus a staff of responsive financial industry professionals making spirits bright.

With all the menorah candles already burning bright and the New Age safely established on this side of the galactic alignment, the world now turns its attention to that greatest story ever told about a poor baby born in Bethlehem.  We’re excited to tell our story too and ask you to help us strike the harp and join the chorus.  Use our services and tell your friends, you won’t be disappointed.  There’s not too much new to tell about Quant’s rankings today, the SPDR S&P Oil & Gas Exploration & Production Fund (XOP) gets the top score and the First Trust NASDAQ-100-Technology Sector Index Fund (QTEC) gets today’s 10 Green Reward Diamonds, both have been scoring well recently.  Futures signal a rough day today so we expect some movement in Monday’s run and we will let you know what Quant has to say before next week’s trading days but it may not be at dawn’s early light.  That said, our dedicated staff of professionals stands ready to assist you and we all wish you a Merry Christmas and a Happy New Year!

Tell your wife and kids you love them and buckle your seat belt, it only happens every 26,000 years and today our galaxy will travel through the Milky Way, or something like that.  Quant sees 4 Russell funds as good vehicles for our magic carpet ride.  All are among today’s 20 A rated funds that score above that magical 70 Quant mark.  So on this dawning of the Age of Aquarius let’s shine some sunlight into these 4 funds.

Leading the pack in 4^th place today is the small cap iShares Russell 2000 Growth Fund (IWO).  Coming from iShares and having 2000 constituents gives it a very high Quality Score of 96.3 but that has always been the case and didn't move the fund into Quant’s upper ranks today.  Its Sentiment Score of 80.8 moved up more than 20 points which is responsible for it gaining 16 Quant positions overnight.  Option activity was the driver here with the Put/Call score rising from 28.7 to 76.  On the large cap value side Quant also likes the iShares Russell 1000 Value Fund (IWD) in 15^th place today also driven by a rising Put/Call Score as well as a rising Implied Volatility Score.  Maybe it’s going to be a bumpy ride across the universe.  If you can’t decide between growth and value, the broad large cap iShares Russell 1000 Fund (IWB) and broad small cap iShares Russell 2000 Fund (IWM) are in 18^th and 20^th place respectively.  Someone with a lot of money thinks something bad is going to happen because heavy put buying is also responsible for these two gaining dozens of Quant positions overnight.  However, not so bad that they won’t be able to cash in those puts on the other side of the galactic alignment.  Aside from those rising Sentiment Scores and very high Quality Scores, all 4 funds have decent but not great Technical Scores in the 60s with the broad small cap IWM scoring best at 65.4.  On the Fundamental Side the small cap growth IWO is best at 70.8.

If the planet Nibiru doesn't collide with earth today those puts will have to be covered which should give these funds a boost in the new age of spiritual transformation.  We hope they still have ETFs then and we hope you all still come here to transform your portfolios into outperformers.  We hope it all goes well and we’ll see you on the other side. Godspeed friends.