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:
- Equities continue to rebound from the October stock market sell off and causing the 100% equities strategies to outperform strategies partially allocated to bonds (i.e. the three Passive strategies listed below) so far this month.
- Over the trailing 3 months, less cyclical strategies (i.e. Value, Low Volatility, High Dividend, and Quality) have outperformed more cyclical strategies (i.e. Sector Rotation, Momentum, and S&P 500 Equal weighted) as investors flee to less volatile/risky equities.
- Momentum has experienced the best year-to-date performance as momentum-based equities’ substantial gain over the greater portion of the year has eclipsed its losses from the recent market sell-off.
- Passive strategies have suffered the worst performance year-to-date as rising interest rates has caused their exposure to fixed income securities to put a drag on their performance. All other listed strategies are 100% equity.