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Archives for Smart-Beta Performance Report

Equity Factor Performance Report

With the month of July coming to a close, Momentum and Growth equities have dominated in performance with returns over 3.0%.  However, Dividend and Size equities fell short of other equity factors as they recognized only 1.5% and 2.0% respective returns.

Comments on this week’s report:

  • Over the trailing three-months, Momentum and Low-Volatility equities have largely outperformed all other listed factors, while Dividend equities trail.
  • Year-to-date all equities have experienced near 20% returns (other than Dividend equities) with Growth factor equities experiencing the largest return of 25.2%.
  • Over the trailing 1-year Low-Volatility equities have largely outperformed all other listed factors with an 18.1% return.  Over the same time frame, Dividend equities have significantly underperformed with a 6.1% return.
  • Over the trailing 3-years Growth and Momentum equities have outperformed the S&P 500 (SPY)  by a near 4% annualized rate.  Meanwhile, all other listed equity factors have underperformed the S&P 500 with Dividend and Value equities experiencing the greatest margin of underperformance.
  • Over the trailing 5-year period, Value equities had the greatest degree of underperformance, trailing the S&P 500 by nearly a 3.0% annualized rate.  However, Momentum equities had the greatest degree of outperformance, exceeding the S&P 500 by nearly a 4.4% annualized rate.
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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Equity Factor Performance Report

July has been an overall positive month for equities with Momentum and Growth equity factors largely outperforming all other listed factors.  Meanwhile, Dividend and Size equity factors have lagged month-to-date as they struggle to breach 2.0%

Comments on this week’s report:

  • Over the trailing three-months, Momentum and Low-Volatility equities have largely outperformed all other listed factors, while Dividend equities trail.
  • Year-to-date all equities have experienced near 20% returns (other than Dividend equities) with Growth factor equities experiencing the largest return of 25.2%.
  • Over the trailing 1-year Low-Volatility equities have largely outperformed all other listed factors with an 18.1% return.  Over the same time frame, Dividend equities have significantly underperformed with a 6.1% return.
  • Over the trailing 3-years Growth and Momentum equities have outperformed the S&P 500 (SPY)  by a near 4% annualized rate.  Meanwhile, all other listed equity factors have underperformed the S&P 500 with Dividend and Value equities experiencing the greatest margin of underperformance.
  • Over the trailing 5-year period, Value equities had the greatest degree of underperformance, trailing the S&P 500 by nearly a 3.0% annualized rate.  However, Momentum equities had the greatest degree of outperformance, exceeding the S&P 500 by nearly a 4.4% annualized rate.
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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Smart-Beta Performance Report

July continues to be a strong month for stocks with all listed strategies in the black.  With that said, portfolios with greater exposure to bonds (i.e. Conservative and Balanced) have trailed all other listed strategies.

Comments on this week’s report:

  • Over the trailing three-months, Momentum and Sector Rotation have outperformed all other listed strategies and is primarily attributed to their greater exposure to growth-orientated stocks and the market experiencing upward momentum.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

July continues to be a strong month for stocks with all listed strategies in the black.  With that said, portfolios with greater exposure to bonds (i.e. Conservative and Balanced) have trailed all other listed.

Comments on this week’s report:

  • Over the trailing three-months, Momentum and Sector Rotation have outperformed all other listed strategies and is primarily attributed to their greater exposure to growth-orientated stocks and the market experiencing upward momentum.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

July has started off on the right foot with all listed strategies in the black.  Leading the way or the more growth-orientated equities of Momentum and Sector Rotation.  Trialing for the month, are portfolios with exposure to bonds as equities outpace fixed income securities.

Comments on this week’s report:

  • Over the trailing three-months, Momentum and Sector Rotation have outperformed all other listed strategies and is primarily attributed to their greater exposure to growth-orientated stocks and the market experiencing upward momentum.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

Equities continue to rally higher in the month of June as investors feel more confident in the stock market with the Fed considering a rate cut.  Leading the way are Value and Quality based equities which are up nearly 7.0%, and trailing are Low-Volatility equities which are up only 4.5%.

Comments on this week’s report:

  • Due to an increase in market volatility over the trailing three months, investors fled to Low-volatility equities causing them to perform relatively well in that time frame.  However, surprisingly enough, High Dividend equities (which also tends to have a low-volatility, conservative nature) have underperformed its peers over the trailing three months.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

Equities are significantly higher so far in the month of June after rallying back from a relatively poor month in May.  Leading the way is Sector Rotation as it benefited from its high concentration (approx. 25% each) in the technology and consumer cyclical sectors.  Low volatility equities have trailed its peers so far this month as investors buy up Quality and Value equities.

Comments on this week’s report:

  • Due to an increase in market volatility over the trailing three months, investors fled to Low-volatility equities causing them to perform relatively well in that time frame.  However, surprisingly enough, High Dividend equities (which also tends to have a low-volatility, conservative nature) have underperformed its peers over the trailing three months.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

Equities continue to rally back this month as investor concerns on a global slowdown from trade policy are somewhat alleviated from Fed Chairman Powell’s comments on potentially cutting interest rates.  Leading the way for equities are those measured based on Quality, Value, and Momentum, while those trailing are Low-Volatility and High Dividend.

Comments on this week’s report:

  • Due to an increase in market volatility over the trailing three months, investors fled to Low-volatility equities causing them to perform relatively well in that time frame.  However, surprisingly enough, High Dividend equities (which also tends to have a low-volatility, conservative nature) have underperformed all its peers over the trailing three months.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

Equities bounced back as the Federal Reserve Chairman Jerome Powell suggested to cut interest rates if President Trump’s trade war weakened the economy.  Month-to-date, Value and High Dividend equities lead the group, while portfolio with exposure to bonds (i.e. Conservative, Balanced, and Growth) trail the group.

Comments on this week’s report:

  • Due to an increase in market volatility over the trailing three months, investors fled to Low-volatility equities which have vastly outperformed its peers in that time frame.  Surprisingly, High Dividend equities (which also tends to have a low-volatility, conservative nature) has underperformed all its peers over the trailing three months and remains in the red.
  • Year-to-date Sector Rotation is outperforming its peers as its high concentration in the technology and industrial sectors (appoximately 25% each) has driven it to outperform.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.  Similar to Low-Volatility, Conservative portfolios that have a greater allocation to bonds, also benefited from their relatively lower drawdown in the late 2018 market correction.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap.  Conversely,  Value based equities (which are stocks that are considered undervalued relative to other comparable companies) have trailed the overall stock market in most time frames.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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Smart-Beta Performance Report

Fears of a prolonged trade war between the U.S. and China continues to weigh on the stock market as some of the listed all-equity factors (i.e. all those not listed as “Passive“) are down over 4.0% month-to-date.  However, Low-Volatility equities are still in the black and even outperforming a Passive 70/30 – Conservative portfolio (i.e. 70% bonds and 30% stocks).

Comments on this week’s report:

  • High Dividend equities have been surprisingly underperforming Low-Volatility equities over the trailing three-months despite their similar characteristics of having a low degree of volatility and conservative nature.
  • Year-to-date Sector Rotation has outperformed all other listed strategies as its high concentration in the technology and industrial sectors (which were among the top performing sectors in that time frame) has driven it higher.  However, for that same reason Sector Rotation has underperformed over the trailing 1-year period as its lack of diversification caused it to suffer a larger drawdown in the late 2018 market correction.
  • Contrary to Sector Rotation, Low-volatility is vastly 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.
  • Quality based equities (which are measured on ROE, accrual ratio, and financial leverage) have performed relatively well in all time frames as it remains at the top of the heap, and narrows its gap between the best performing Sector Rotation on a year-to-date basis and surpassed Sector Rotation over the trailing three months.
  • Momentum based equities have outperformed over the trailing 3-year and 5-year periods as during those time frames the stock 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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