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

ASHR Deutsche X-Trackers CSI 300 China A Shares

DBKO Xtrackers MSCI South Korea Hdg Eq ETF

EIDO iShares MSCI Indonesia Index

EPHE iShares MSCI Philippines

EPI WisdomTree India Earnings Index

EWJ iShares MSCI Japan Index Fund

EWM iShares MSCI Malaysia Index Fund

EWS iShares MSCI Singapore Index

EWT iShares MSCI Taiwan Index Fund

EWY iShares MSCI South Korea Index Fund

EWZ iShares MSCI Brazil Index Fund

EZA iShares MSCI South Africa Index

FXI iShares FTSE China 25 Index Fund

IDX Market Vectors Indonesia

THD iShares MSCI Thailand Index

VNM Market Vectors Vietnam

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, when measuring performance, is the actual rate of return of an investment or a pool of investments over a given evaluation period. Total return includes interest, capital gains, dividends and distributions realized over a given period of time. Total return accounts for two categories of return: income including interest paid by fixed-income investments, distributions or dividends and capital appreciation, representing the change in the market price of an asset.'

Which means for our asset as example:- Compared with the benchmark SPY (68.7%) in the period of the last 5 years, the total return of 111.2% of World Countries Asia is larger, thus better.
- Looking at total return, or increase in value in of 40.8% in the period of the last 3 years, we see it is relatively smaller, thus worse in comparison to SPY (47.9%).

'The compound annual growth rate (CAGR) is a useful measure of growth over multiple time periods. It can be thought of as the growth rate that gets you from the initial investment value to the ending investment value if you assume that the investment has been compounding over the time period.'

Using this definition on our asset we see for example:- The compounded annual growth rate (CAGR) over 5 years of World Countries Asia is 16.1%, which is larger, thus better compared to the benchmark SPY (11%) in the same period.
- Looking at annual return (CAGR) in of 12.1% in the period of the last 3 years, we see it is relatively lower, thus worse in comparison to SPY (14%).

'Volatility is a rate at which the price of a security increases or decreases for a given set of returns. Volatility is measured by calculating the standard deviation of the annualized returns over a given period of time. It shows the range to which the price of a security may increase or decrease. Volatility measures the risk of a security. It is used in option pricing formula to gauge the fluctuations in the returns of the underlying assets. Volatility indicates the pricing behavior of the security and helps estimate the fluctuations that may happen in a short period of time.'

Applying this definition to our asset in some examples:- Looking at the historical 30 days volatility of 26.7% in the last 5 years of World Countries Asia, we see it is relatively higher, thus worse in comparison to the benchmark SPY (13.3%)
- Looking at volatility in of 18.2% in the period of the last 3 years, we see it is relatively larger, thus worse in comparison to SPY (12.5%).

'Downside risk is the financial risk associated with losses. That is, it is the risk of the actual return being below the expected return, or the uncertainty about the magnitude of that difference. Risk measures typically quantify the downside risk, whereas the standard deviation (an example of a deviation risk measure) measures both the upside and downside risk. Specifically, downside risk in our definition is the semi-deviation, that is the standard deviation of all negative returns.'

Using this definition on our asset we see for example:- Looking at the downside risk of 27.7% in the last 5 years of World Countries Asia, we see it is relatively greater, thus worse in comparison to the benchmark SPY (14.6%)
- Looking at downside deviation in of 20.1% in the period of the last 3 years, we see it is relatively greater, thus worse in comparison to SPY (14.2%).

'The Sharpe ratio (also known as the Sharpe index, the Sharpe measure, and the reward-to-variability ratio) is a way to examine the performance of an investment by adjusting for its risk. The ratio measures the excess return (or risk premium) per unit of deviation in an investment asset or a trading strategy, typically referred to as risk, named after William F. Sharpe.'

Which means for our asset as example:- Looking at the ratio of return and volatility (Sharpe) of 0.51 in the last 5 years of World Countries Asia, we see it is relatively lower, thus worse in comparison to the benchmark SPY (0.64)
- During the last 3 years, the ratio of return and volatility (Sharpe) is 0.53, which is lower, thus worse than the value of 0.91 from the benchmark.

'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.'

Which means for our asset as example:- The ratio of annual return and downside deviation over 5 years of World Countries Asia is 0.49, which is lower, thus worse compared to the benchmark SPY (0.58) in the same period.
- During the last 3 years, the excess return divided by the downside deviation is 0.48, which is lower, thus worse than the value of 0.81 from the benchmark.

'The ulcer index is a stock market risk measure or technical analysis indicator devised by Peter Martin in 1987, and published by him and Byron McCann in their 1989 book The Investors Guide to Fidelity Funds. It's designed as a measure of volatility, but only volatility in the downward direction, i.e. the amount of drawdown or retracement occurring over a period. Other volatility measures like standard deviation treat up and down movement equally, but a trader doesn't mind upward movement, it's the downside that causes stress and stomach ulcers that the index's name suggests.'

Using this definition on our asset we see for example:- Looking at the Ulcer Ratio of 22 in the last 5 years of World Countries Asia, we see it is relatively larger, thus better in comparison to the benchmark SPY (3.96 )
- Looking at Downside risk index in of 10 in the period of the last 3 years, we see it is relatively greater, thus better in comparison to SPY (4.01 ).

'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:- Compared with the benchmark SPY (-19.3 days) in the period of the last 5 years, the maximum DrawDown of -38.6 days of World Countries Asia is lower, thus worse.
- Looking at maximum DrawDown in of -23.7 days in the period of the last 3 years, we see it is relatively smaller, thus worse in comparison to SPY (-19.3 days).

'The Drawdown Duration is the length of any peak to peak period, or the time between new equity highs. The Max Drawdown Duration is the worst (the maximum/longest) amount of time an investment has seen between peaks (equity highs) in days.'

Using this definition on our asset we see for example:- Compared with the benchmark SPY (187 days) in the period of the last 5 years, the maximum days under water of 697 days of World Countries Asia is greater, thus worse.
- Compared with SPY (139 days) in the period of the last 3 years, the maximum days under water of 284 days is greater, thus worse.

'The Drawdown Duration is the length of any peak to peak period, or the time between new equity highs. 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:- The average time in days below previous high water mark over 5 years of World Countries Asia is 239 days, which is larger, thus worse compared to the benchmark SPY (41 days) in the same period.
- During the last 3 years, the average days below previous high is 93 days, which is larger, thus worse than the value of 36 days from the benchmark.

Historical returns have been extended using synthetic data.
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- "Year" returns in the table above are not equal to the sum of monthly returns due to compounding.
- Performance results of World Countries Asia 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.