In the past week the S&P 500 saw a 4-day pullback before recovering on Friday to close down just 0.04% on the week.
The “Style” Portfolio we have been tracking was down 0.20% on the week with a 3-week return of 1.73% (from 1.93% last week). This is still better than the 3-week return of 0.88% in the S&P 500.
The SPY filtered list was down 0.24% with a 3-week return of 1.92% (from 2.16% last week).
The 10 ETF “Sector” Portfolio was down 0.10% to 0.62% (from 0.72% last week) with the 5 ETF SPY filtered Portfolio down 0.30% to 0.76% (from 1.06% last week). Both are slightly underperforming the S&P 500.
Although 3 weeks is not a significant test period it is interesting to observe that the “Style” Portfolios are out-performing the more diversified “Sector”, “Industry” and “Dividend” Portfolios – in fact the “Style” Portfolios are outperforming 8 of the 10 “Component” portfolios identified in the Hawking Portfolio Posts. The only “Component” portfolio that is outperforming the “Style” portfolios is the “Inverse” “portfolio” (up 4.53% over the 3 weeks) that is 100% allocated to DGZ, the inverse Gold ETF – this is this week’s leading “component portfolio”.
This makes me question whether, with (diversified) ETFs, there is any benefit in digger deeper to find better performing Sectors, Industries or other sub-divisions of the broader market as we might do with individual stocks. The only other significant observation seems to be that portfolios with the added SPY momentum filter are performing better than portfolios (comprising more ETFs) filtered solely by SHY . This may not be too surprising in a bullish market.
Last week’s best performing Portfolio, International (Developed Market) ETFs with SPY filter, that was up 2.44% after 2 weeks, took a 2.27% loss and is now up only 0.17% over the 3-week period. Actually the best performing portfolio last week (+2.70%) would have been the Inverse ETF portfolio – except this portfolio was only added after I had posted last week’s performance – however, this portfolio is represented by only one asset, DGZ, the inverse Gold ETF (this week’s leader).
The following are the best (3-week) performing ETFs that I’m tracking:
HAO (China Small Cap) – 5.64% (4.72% last week)
DGZ (Inverse Gold) – 4.53% (2.70% last week)
GREK (Greece) – 3.80% (5.74% last week)
KRE (Regional banks) – 3.70% (3.78% last week)
QQQ (Nasdaq 100) – 2.61%
ITA 🙂 (US Aerospace & Defense) – 2.59% (3.50% last week)
FXF (Swiss Franc) – 2.57%
HAO and DGZ were the largest gainers in the last week.