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.
Comments on this week’s report:
- As equities continue to rebound from the stock market correction in late 2018, “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 continues to outperform 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 underperformance it had during the stock market correction at the end of 2018.
- Contrary to Sector Rotation, Low-volatility is outperforming all other listed strategies (other than Passive 70/30 – Conservative portfolios) on a 3-month and 1-year basis as it benefited from its 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.