Skip to main content Skip to search

Archives for Smart-Beta Performance Report

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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

Smart-Beta Performance Report

On a month-to-date basis all listed strategies are in the red as a trade war between the U.S. and China weighs on investor confidence.  Low-Volatility has been the best performer month-to-date as they are down only -0.3%, and are even outperforming Passive 70/30 – Conservative (i.e a conservatively allocated portfolio of 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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

Smart-Beta Performance Report

Month-to-date all listed strategies are at a loss due to an increase in worries of a trade war between the U.S. and China.  Suffering the worst losses month-to-date are Quality, Value, and High Dividend equities, while those suffering the least were less sensitive. Low-Volatility equities and conservatively allocated portfolios (i.e. Passive 70/30 – Conservative).

Comments on this week’s report:

  • Over the trailing three months, High Dividend equities have underperformed all other listed 100% equity strategies (i.e. all but those listed as “Passive”) as significant exposure to health care stock dragged on its performance.  Conversely, Sector Rotation and Quality have outperformed due to their overweighting to the technology sector.
  • 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 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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

Smart-Beta Performance Report

As a new month starts, all listed strategies are relatively flat on limited data.  However, the two best performing sectors over the trailing three months (i.e. Sector Rotation and Quality), have started off the month as the top performer and bottom performer, respectively.

Comments on this week’s report:

  • 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 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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

Smart-Beta Performance Report

As earnings season continues to progress through the month of April, equities measured based on Value (i.e. price-to-book, price-to-earnings, and price-to-sales) have outperformed all other listed strategies.  Trailing all other listed strategies for the month are Low-Volatility equities and conservatively allocated portfolios (i.e. Passive 70/30 – Conservative).

Comments on this week’s report:

  • 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.
  • 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 its returns to be more volatile and risky.
  • 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.
  • 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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

Smart-Beta Performance Report

For the month of April S&P 500 Equal Weighted, Value, and Quality equities have outpaced all other listed strategies.  Meanwhile, Sector Rotation, Momentum, and Low Volatility have fallen behind all other listed strategies for the month, including those allocated to as much as 70% and 50% bonds (i.e. Passive 70/30 and Passive 50/50).

Comments on this week’s report:

  • 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 and surpassed Sector Rotation on a trailing 3-month basis.
  • 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 its returns to be more volatile and risky.
  • 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.
  • 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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more

Smart-Beta Performance Report

For the month of April all listed strategies are in the black, with S&P 500 Equal Weighted, Value, and Quality equities at the top of the heap.  At the bottom is Passive 70/30 – Conservative (i.e. 70% allocation to fixed income), and surprisingly Momentum given the performance of other 100% equity strategies.

Comments on this week’s report:

  • 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 causes its returns to be more volatile and risky.
  • 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.
  • 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 and trailing 3-month basis.
  • 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™.

Like what you read? Subscribe to our mailing list and receive notifications when new content is posted.

* indicates required
Interested Posts

Follow us on social media!

Read more