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:

  • Due to the recent pull back in the stock market, 3-year and 5-year annualized returns were shaved down as much as 5% for all equity portfolios (i.e. all but “Passive”), causing the trailing 1-year return for the same portfolios to turn negative.
  • Month-to-date all portfolios are largely negative as concerns on economic global growth and trade weigh on investor confidence.  In the same time frame “Passive” portfolios (which have exposure to bonds) and “Low Volatility” equities have performed the best as investors flee to safer securities.

  • Over the trailing 3 months, less cyclical portfolios (i.e. Value, Low Volatility, High Dividend, and Quality) have outperformed the more cyclical portfolios (i.e. Sector Rotation, Momentum, and S&P 500 Equal weighted) as investors move their money to lower risk equities.

  • Low-volatility surpassed Momentum year-to-date as the recent push to less volatile (low-risk) equities drove its performance higher.  However, earlier in the year Momentum was leading the pack and despite the market sell-off is still performing relatively well due to its outperformance earlier in the year.

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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