Investment is very easy but investing in right asset at right time is even more crucial and important. Stocks, bonds and commodities in different sectors and markets vary and can make a huge difference in terms of increasing returns and reducing or downsize their risks for the long term. All world ETF rotation model will help you to compare and choose appropriate investment for particular sector to make more profit and downsize the risks.
The ETFs in the universe are:
• SPDR, S&P 500 for big stocks for all the U.S.
• iShares Russell 2000 Fund (Index) for small stocks in the U.S.
• iShares MSCI EAFE or known as (EFA) for international stocks in developed markets
• iShares MSCI Emerging Market for all international stocks in trading markets.
• PowerShares DB Commodities or known as DBC for commodities
• SPDR Gold Trust (GLD) for gold shares
• Vanguard MSCI U.S. REIT for REITs
• iShares Barclays Long-Term Treasury or TLT for Treasury bonds
• Barclays Low Duration Treasury or SHY for short-term Treasury bonds
All world ETF Rotation Model focuses on up-trending US traded ETFs with a capitalization of at least $3 billion or higher and an average daily trading volume of at least 3 million shares. In all cases, the manager’s discretion applies.
The S&P 500 (for big stocks) Quality, Value & Momentum Multi-Factor Index which is designed to calculate performance of 100 stocks within the S&P 500 that evaluates top combination of quality, value, and momentum that is determined by a multifactor score. Value-Quality Factor Index Strategy needs to be considerable for long term investment.
There are six major factors for indexing:
Value quality factor index strategy combines the benefits of active and passive investments and able to deliver risk premium in long term in a transparent, rule-based and within cost effective manner. Factor based investing has come across long-way after the first factor-based ETF which was introduced back in 2003. As on January 2017, there are 1,200+ factor-based equity ETFs/ETPs available globally with the total assets under the management of US$534 billion which is offered by around 150 asset managers listed on 37 exchanges among 32 countries.
There are some other factor based strategies such as:
• Value quality index strategy
• Growth momentum index strategy
• Low beta index strategy
• Size index strategy
• All cap multi factor strategy
• Large cap multi factor strategy
• Factor definitions etc.