Global ETF Sector August Portfolio
Thursday, August 5th, 2010Scott’s Investments submits:
Global sector ETF performance update for the close of July is below and has also been updated as a free portfolio to track on my blog. Note that all of the ETFs were below the 200 day moving average at the end of June which in my preferred strategy would exclude them for consideration of any long position. However, this month 4 of the 10 ETFs are above the 200 day SMA. The top three at the end of July based on momentum are EXI (Industrials), IXP (telecom), and KXI (staples). EXI and KXI were 2 of last month’s top 3, IXP has replaced RXI (discretionary). I have previously discussed some possible strategies using this data here as well as some more active trading strategies.
The momentum strategy that an investor could implement would be to purchase the best returning ETF(s) over the trailing 3, 6, and 12 months (sum). This strategy has been written about extensively by Mebane Faber, author of The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets
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.Another strategy would involve purchasing the top performing ETFs based on 6 month (half year) returns and only purchase ETFs when they are also above their 200 day simple moving average.
The data source for the information below is Finviz.
In addition, I have also added an exciting new ranking feature. Using ETF Replay, I am ranking the ETFs in various portfolios based on their 3-factor statistical model that combines relative strength and volatility. The current ranking of the 10 ETFs is below. I ranked the ETFs over different time periods – the first column is the rank of each ETF based on a combination of 6 month and 3 month return and 3 month volatility and the second is the 3 month return, 20 day return, and 20 day volatility. I have also included SHY (a low duration bond ETF, a close substitute for cash) as an alternative for cash. For previous discussions on this system please read the articles here and here.
| Ticker | Company | Free Trend Analysis | Performance (Quarter) | Half Year | Year | Sum | 200-Day SMA |
| EXI | iShares S&P Global Industrials | Here | -5.47% | 7.72% | 21.86% | 24.11% | 2.95% |
| IXC | iShares S&P Global Energy | Here | -9.28% | -2.69% | 3.38% | -8.59% | -5.57% |
| IXG | iShares S&P Global Financials | Here | -3.90% | 4.23% | 9.11% | 9.44% | -0.51% |
| IXJ | iShares S&P Global Healthcare | Here | -5.66% | -7.36% | 3.62% | -9.40% | -5.44% |
| IXN | iShares S&P Global Technology | Here | -8.16% | 3.20% | 10.89% | 5.93% | -1.39% |
| IXP | iShares S&P Global Telecommunications | Here | 4.90% | 7.03% | 9.37% | 21.30% | 4.31% |
| JXI | iShares S&P Global Utilities | Here | -0.50% | -1.13% | 2.93% | 1.30% | -0.80% |
| KXI | iShares S&P Global Consumer Staples | Here | -0.28% | 3.60% | 15.31% | 18.63% | 1.82% |
| MXI | iShares S&P Global Materials | Here | -5.07% | 4.86% | 14.87% | 14.66% | -1.39% |
| RXI | iShares S&P Global Cons Discretionary | Here | -6.23% | 6.51% | 16.97% | 17.25% | 2.09% |
| ETF Replay Ranking | 6 month return / 3 month return / 3 month volatility | 3 month return / 20 day ret/ 20 day volatility | |
| SHY | 3 | 2 | |
| EXI | 4 | 7 | |
| IXC | 11 | 9 | |
| IXG | 8 | 5 | |
| IXJ | 10 | 8 | |
| IXN | 9 | 10 | |
| IXP | 1 | 1 | |
| JXI | 6 | 4 | |
| KXI | 2 | 3 | |
| MXI | 7 | 6 | |
| RXI | 5 | 11 |
Disclosure: None
