The table below summarizes the Top 5 Rankings of Emerging Market ETFs. It is updated at the end of every month . This table represents one of the building blocks used in our Premium Portfolios. Similar rankings are also available for Main Asset Classes and U.S. Sectors.
The table below summarizes 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 month, provided they rank higher than cash (SHY), and holding on to them for one month. For instance, if your strategy is to purchase the Top3 ETFs, but SHY ranks second, they you would allocate 1/3 of your portfolio to the Top1 ETF and 2/3 to cash. Results refer to the 10-year backtesting period 2003-2012.
| Strategy | CAGR | Volatility | Max DD | Trades |
|---|---|---|---|---|
| Top 1 | +30.2% | 23.6% | -28.8% | 0.7 |
| Top 2 | +28.1% | 20.9% | -17.8% | 1.1 |
| Top 3 | +24.0% | 19.6% | -17.3% | 1.4 |
| Top 4 | +22.7% | 18.1% | -15.9% | 1.6 |
| Top 5 | +19.9% | 17.5% | -15.8% | 1.8 |
The Table below summarizes the yearly performance of the Top 2 strategy:
| Year | 2003 | 2004 | 2005 | 2006 | 2007 | 2008 | 2009 | 2010 | 2011 | 2012 |
|---|---|---|---|---|---|---|---|---|---|---|
| Return | 57.7% | 27.4% | 8.5% | 38.3% | 61.8% | -4.8% | 59.8% | 43.6% | -9.6% | 22.9% |
Discussion
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Top Emerging Markets Strategy | My ETF Hedge Fund February 5, 2013
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Asset Allocation for May 2013 | My ETF Hedge Fund May 1, 2013
