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:
- Over the trailing 3-months Low-Volatility equities and “Passive” portfolios (which have exposure to fixed income securities) are outperforming all other listed strategies as they largely benefited from their limited drawdowns during the late 2018 market correction.
- Over the trailing 1-year Sector Rotation strategies have been underperforming all other listed strategies due to its large amount of underperformance during the late 2018 market correction. However, it is quickly catching up to the other strategies as it has the best year-to-date performance.
- Contrary to Sector Rotation, Low-volatility is outperforming all other listed strategies on a 1-year basis as it benefited from its relatively lower drawdown during the stock market correction at the end of 2018, while still participating in the more recent stock market rally.
- 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.