The Milwaukee Company’s Smart-Beta Performance Report is a weekly review of the performance of ten indexes that are managed using “smart-beta” asset allocation theories. This Report is for informational purposes only and should not be regarded as a substitute for independent research and personalized investment advice.
Comment’s on this week’s report:
- As equities continue to rebound from the stock market correction, “Passive” portfolios (which include an allocation to fixed income) are underperforming most other 100% equity strategies so far this month.
- The only 100% equity strategy that is underperforming Passive strategies is “Low Volatility” equities as investors buy up the more beat up equities in strategies such as “Sector Rotation” and “S&P 500 Equal Weighted”.
- Despite the relatively poor performance from Momentum based equities over the trailing 3-months, over trailing 1 year, 3 year, and 5 year periods they have largely outperformed as in those time frames the market has primarily experienced upward momentum.