Asset Class Rankings

The table below summarizes the Top 5 Rankings of ETFs representing the main asset classes. It is based on a universe of 25 ETFs. It is updated bi-monthly, i.e. at the end of every month and mi-month (usually on the 15th of each month). This table represents one of the building blocks used in our Premium Portfolios. Similar rankings are also available for Emerging Markets and U.S. Sectors.

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Read below to see how powerful and actionable the above table is. More details on how to profitably use the above signals also in this post.

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How to profitably use the above rankings

The tables below summarize the Compounded Annual Gross Return (CAGR), Volatility, Maximum Drawdown (Max DD) and average number of round-trip trades per month of the strategy consisting of buying the Top X ETFs at the end of every rebalancing period and holding on to them until the next period. Results are provided for both monthly and bi-monthly rebalancing and refer to the 10-year backtesting period 2003-2012.

Monthly Rebalancing

Strategy	CAGR	Volatility	Max DD	Trades
Top 1	+33.2%	28.1%	-33.2%	0.8
Top 2	+23.3%	22.4%	-23.9%	1.5
Top 3	+27.2%	19.6%	-22.7%	1.8
Top 4	+24.4%	18.3%	-21.5%	2.3
Top 5	+21.3%	17.3%	-18.7%	2.6

Bi-Monthly Rebalancing

Strategy	CAGR	Volatility	Max DD	Trades
Top 1	+28.1%	28.0%	-26.9%	1.2
Top 2	+25.5%	21.8%	-24.7%	2.2
Top 3	+27.2%	19.0%	-21.8%	2.9
Top 4	+27.6%	17.9%	-19.4%	3.2
Top 5	+22.9%	16.9%	-16.9%	3.7

The chart above illustrates the performance of buying the Top 4 ETFs and rebalancing twice a month over the last 10 years. See recent holdings.
Top4