ETF rankings and Cluster Analysis for this coming week can be found in the two data tables. In the first table I show the rankings for the 30 ETFs (one stock is BRK.B) I use to populate most portfolios. BRK.B and VWO hold the top two spots as they have for most of this past week. Two growth asset classes, Mid-Cap Growth (VOT) and Large-Cap Growth (VUG) are near the top and then we have the total market ETF, VTI, performing very well. In addition to the straight ranking, I check the absolute acceleration percentage (far right-hand column) as I want to find positive values which show current performance (most recent 91 days) is better than past performance (most recent 182 days.
For a more extensive list of ETFs, consider this blog post.
ETF Rankings: In addition to the top performers, it is just as important to check the laggards as we want to sell those out of the portfolio. Note that VEU finally dropped below SHY, our cutoff ETF. Gold (GLD), Commodities (DBC), and the international ETFs (VEA, SCZ, VSS, and VEU) are dragging the bottom.
Cluster Analysis: In the cluster analysis we are looking for the top performers that have low correlations with each other. With the Weighting Filter set to eleven (11), five ETFs make the cut and they are: VOT, BRK-B, VYM, VWO, and TLT. If anyone happens to be using this same list of securities, you can see the recommended percentages to invest in each.
As mentioned elsewhere on this blog, to conduct the cluster analysis you will need a special spreadsheet that is contained within the Peter Hoadley Financial Excel add-in. If you wish to know more, ask in the Comments section.