The World Country Africa strategy is a sub-strategy that picks the top country of the specified region. It is part of the World Top 4 investment strategy.

AFK Market Vectors Africa Index

EGPT Market Vectors Egypt Index

EIS iShares MSCI Israel

EZA iShares MSCI South Africa Index

FM iShares MSCI Frontier Markets ETF

FRN Guggenheim BNY Mellon Frontier Mkts

GULF WisdomTree Middle East Dividend Index

GREK Global X FTSE Greece 20

RSX Market Vectors DAXglobal Russia

TUR iShares MSCI Turkey

From the HEDGE strategy:

GLD – SPDR Gold Shares

TLT– iShares Barclays Long-Term Treasuries (15-18yr)

Short Sectors:

SMN - ProShares UltraShort Basic Materials

ERY - Direxion Daily Energy Bear 3X ETF

SKF - ProShares UltraShort Financials

SIJ - ProShares UltraShort Industrial

REW - ProShares UltraShort Technology

RXD - ProShares UltraShort Health Car

SCC - ProShares UltraShort Consumer Service

SDP - ProShares UltraShort Utilities

SZK - ProShares UltraShort Consumer Goods

'Total return is the amount of value an investor earns from a security over a specific period, typically one year, when all distributions are reinvested. Total return is expressed as a percentage of the amount invested. For example, a total return of 20% means the security increased by 20% of its original value due to a price increase, distribution of dividends (if a stock), coupons (if a bond) or capital gains (if a fund). Total return is a strong measure of an investment’s overall performance.'

Which means for our asset as example:- Looking at the total return of 21.4% in the last 5 years of World Countries Africa, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (67.8%)
- Compared with SPY (44.5%) in the period of the last 3 years, the total return, or increase in value of 43.5% is lower, thus worse.

'Compound annual growth rate (CAGR) is a business and investing specific term for the geometric progression ratio that provides a constant rate of return over the time period. CAGR is not an accounting term, but it is often used to describe some element of the business, for example revenue, units delivered, registered users, etc. CAGR dampens the effect of volatility of periodic returns that can render arithmetic means irrelevant. It is particularly useful to compare growth rates from various data sets of common domain such as revenue growth of companies in the same industry.'

Which means for our asset as example:- The annual performance (CAGR) over 5 years of World Countries Africa is 4%, which is smaller, thus worse compared to the benchmark SPY (10.9%) in the same period.
- Compared with SPY (13.1%) in the period of the last 3 years, the annual return (CAGR) of 12.8% is smaller, thus worse.

'In finance, volatility (symbol σ) is the degree of variation of a trading price series over time as measured by the standard deviation of logarithmic returns. Historic volatility measures a time series of past market prices. Implied volatility looks forward in time, being derived from the market price of a market-traded derivative (in particular, an option). Commonly, the higher the volatility, the riskier the security.'

Which means for our asset as example:- Compared with the benchmark SPY (21.4%) in the period of the last 5 years, the 30 days standard deviation of 17.7% of World Countries Africa is lower, thus better.
- Compared with SPY (18.8%) in the period of the last 3 years, the historical 30 days volatility of 14.1% is smaller, thus better.

'The downside volatility is similar to the volatility, or standard deviation, but only takes losing/negative periods into account.'

Applying this definition to our asset in some examples:- Looking at the downside deviation of 13.8% in the last 5 years of World Countries Africa, we see it is relatively lower, thus better in comparison to the benchmark SPY (15.4%)
- During the last 3 years, the downside deviation is 9.9%, which is lower, thus better than the value of 13.3% from the benchmark.

'The Sharpe ratio was developed by Nobel laureate William F. Sharpe, and is used to help investors understand the return of an investment compared to its risk. The ratio is the average return earned in excess of the risk-free rate per unit of volatility or total risk. Subtracting the risk-free rate from the mean return allows an investor to better isolate the profits associated with risk-taking activities. One intuition of this calculation is that a portfolio engaging in 'zero risk' investments, such as the purchase of U.S. Treasury bills (for which the expected return is the risk-free rate), has a Sharpe ratio of exactly zero. Generally, the greater the value of the Sharpe ratio, the more attractive the risk-adjusted return.'

Applying this definition to our asset in some examples:- Looking at the risk / return profile (Sharpe) of 0.08 in the last 5 years of World Countries Africa, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (0.39)
- Looking at Sharpe Ratio in of 0.73 in the period of the last 3 years, we see it is relatively greater, thus better in comparison to SPY (0.56).

'The Sortino ratio improves upon the Sharpe ratio by isolating downside volatility from total volatility by dividing excess return by the downside deviation. The Sortino ratio is a variation of the Sharpe ratio that differentiates harmful volatility from total overall volatility by using the asset's standard deviation of negative asset returns, called downside deviation. The Sortino ratio takes the asset's return and subtracts the risk-free rate, and then divides that amount by the asset's downside deviation. The ratio was named after Frank A. Sortino.'

Using this definition on our asset we see for example:- Looking at the excess return divided by the downside deviation of 0.11 in the last 5 years of World Countries Africa, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (0.55)
- Compared with SPY (0.79) in the period of the last 3 years, the downside risk / excess return profile of 1.04 is larger, thus better.

'The Ulcer Index is a technical indicator that measures downside risk, in terms of both the depth and duration of price declines. The index increases in value as the price moves farther away from a recent high and falls as the price rises to new highs. The indicator is usually calculated over a 14-day period, with the Ulcer Index showing the percentage drawdown a trader can expect from the high over that period. The greater the value of the Ulcer Index, the longer it takes for a stock to get back to the former high.'

Which means for our asset as example:- The Ulcer Index over 5 years of World Countries Africa is 14 , which is larger, thus worse compared to the benchmark SPY (9.46 ) in the same period.
- During the last 3 years, the Ulcer Index is 14 , which is higher, thus worse than the value of 10 from the benchmark.

'Maximum drawdown measures the loss in any losing period during a fund’s investment record. It is defined as the percent retrenchment from a fund’s peak value to the fund’s valley value. The drawdown is in effect from the time the fund’s retrenchment begins until a new fund high is reached. The maximum drawdown encompasses both the period from the fund’s peak to the fund’s valley (length), and the time from the fund’s valley to a new fund high (recovery). It measures the largest percentage drawdown that has occurred in any fund’s data record.'

Applying this definition to our asset in some examples:- Looking at the maximum DrawDown of -37.1 days in the last 5 years of World Countries Africa, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (-33.7 days)
- During the last 3 years, the maximum reduction from previous high is -31.7 days, which is lower, thus worse than the value of -24.5 days from the benchmark.

'The Maximum Drawdown Duration is an extension of the Maximum Drawdown. However, this metric does not explain the drawdown in dollars or percentages, rather in days, weeks, or months. It is the length of time the account was in the Max Drawdown. A Max Drawdown measures a retrenchment from when an equity curve reaches a new high. It’s the maximum an account lost during that retrenchment. This method is applied because a valley can’t be measured until a new high occurs. Once the new high is reached, the percentage change from the old high to the bottom of the largest trough is recorded.'

Using this definition on our asset we see for example:- The maximum days below previous high over 5 years of World Countries Africa is 298 days, which is lower, thus better compared to the benchmark SPY (352 days) in the same period.
- During the last 3 years, the maximum days below previous high is 280 days, which is smaller, thus better than the value of 352 days from the benchmark.

'The Average Drawdown Duration is an extension of the Maximum Drawdown. However, this metric does not explain the drawdown in dollars or percentages, rather in days, weeks, or months. The Avg Drawdown Duration is the average amount of time an investment has seen between peaks (equity highs), or in other terms the average of time under water of all drawdowns. So in contrast to the Maximum duration it does not measure only one drawdown event but calculates the average of all.'

Using this definition on our asset we see for example:- Compared with the benchmark SPY (78 days) in the period of the last 5 years, the average time in days below previous high water mark of 100 days of World Countries Africa is higher, thus worse.
- Looking at average days below previous high in of 69 days in the period of the last 3 years, we see it is relatively smaller, thus better in comparison to SPY (102 days).

Historical returns have been extended using synthetic data.
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- Note that yearly returns do not equal the sum of monthly returns due to compounding.
- Performance results of World Countries Africa are hypothetical, do not account for slippage, fees or taxes, and are based on backtesting, which has many inherent limitations, some of which are described in our Terms of Use.