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 have exposure to fixed income securities) are underperforming all other 100% equity strategies listed so far this month.
  • Month-to-date, Sector Rotation is outperforming all other listed strategies.  However, on a trailing 3-month and 1-year basis it is underperforming all other listed strategies, as its recent outperformance has not outweighed the significant damage it took during the stock market correction at the end of 2018.
  • Contrary to Sector Rotation, Low Volatility is underperforming all other 100% equity strategies listed on a month-to-date basis.  However, it is outperforming on a trailing 3-month and 1-year basis as it benefited from a relatively lower drawdown during the stock market correction at the end of 2018.
  • Despite the relatively poor performance from Momentum based equities over the trailing 3-months,  over the trailing 3-year and 5-year periods they have largely outperformed as in those time frames the market has primarily experienced upward momentum.
Important Disclosures:  Please remember that past performance may not be indicative of future results.  Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product made reference to directly or indirectly from The Market Commentator℠, will be profitable, equal any corresponding indicated historical performance level(s), or be suitable for your portfolio.  Due to various factors, including changing market conditions, the content may no longer be reflective of current opinions or positions.  Moreover, you should not assume that any discussion or information contained in The Market Commentator℠ serves as the receipt of, or as a substitute for, personalized investment advice from The Milwaukee Company™.

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