The World Country Asia strategy is a sub-strategy that picksÂ 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

DBKOÂ 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:

GLDÂ â€“Â SPDR Gold Shares

TLTâ€“Â iShares Barclays Long-Term Treasuries (15-18yr)

Short Sectors:

SMNÂ -Â ProShares UltraShort Basic Materials

ERYÂ -Â Direxion Daily Energy Bear 3X ETF

SKFÂ -Â ProShares UltraShort Financials

SIJÂ -Â ProShares UltraShort Industrial

REWÂ -Â ProShares UltraShort Technology

RXDÂ -Â ProShares UltraShort Health Car

SCCÂ -Â ProShares UltraShort Consumer Service

SDPÂ -Â ProShares UltraShort Utilities

SZKÂ -Â 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.'

Using this definition on our asset we see for example:- Compared with the benchmark SPY (98.3%) in the period of the last 5 years, the total return, or performance of 184.3% of World Countries Asia is larger, thus better.
- During the last 3 years, the total return, or increase in value is 43.8%, which is greater, thus better than the value of 27.2% from the benchmark.

'The compound annual growth rate isn't a true return rate, but rather a representational figure. It is essentially a number that describes the rate at which an investment would have grown if it had grown the same rate every year and the profits were reinvested at the end of each year. In reality, this sort of performance is unlikely. However, CAGR can be used to smooth returns so that they may be more easily understood when compared to alternative investments.'

Applying this definition to our asset in some examples:- The annual return (CAGR) over 5 years of World Countries Asia is 23.3%, which is greater, thus better compared to the benchmark SPY (14.7%) in the same period.
- Looking at compounded annual growth rate (CAGR) in of 12.9% in the period of the last 3 years, we see it is relatively higher, thus better in comparison to SPY (8.4%).

'Volatility is a statistical measure of the dispersion of returns for a given security or market index. Volatility can either be measured by using the standard deviation or variance between returns from that same security or market index. Commonly, the higher the volatility, the riskier the security. In the securities markets, volatility is often associated with big swings in either direction. For example, when the stock market rises and falls more than one percent over a sustained period of time, it is called a 'volatile' market.'

Which means for our asset as example:- Compared with the benchmark SPY (20.9%) in the period of the last 5 years, the volatility of 18% of World Countries Asia is smaller, thus better.
- Compared with SPY (17.7%) in the period of the last 3 years, the volatility of 15.5% is lower, thus better.

'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:- Compared with the benchmark SPY (14.9%) in the period of the last 5 years, the downside deviation of 12.6% of World Countries Asia is lower, thus better.
- During the last 3 years, the downside volatility is 11%, which is smaller, thus better than the value of 12.4% 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 ratio of return and volatility (Sharpe) of 1.16 in the last 5 years of World Countries Asia, we see it is relatively greater, thus better in comparison to the benchmark SPY (0.58)
- Compared with SPY (0.33) in the period of the last 3 years, the risk / return profile (Sharpe) of 0.67 is greater, thus better.

'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.'

Applying this definition to our asset in some examples:- Looking at the excess return divided by the downside deviation of 1.65 in the last 5 years of World Countries Asia, we see it is relatively higher, thus better in comparison to the benchmark SPY (0.82)
- Looking at excess return divided by the downside deviation in of 0.95 in the period of the last 3 years, we see it is relatively larger, thus better in comparison to SPY (0.47).

'Ulcer Index is a method for measuring investment risk that addresses the real concerns of investors, unlike the widely used standard deviation of return. UI is a measure of the depth and duration of drawdowns in prices from earlier highs. Using Ulcer Index instead of standard deviation can lead to very different conclusions about investment risk and risk-adjusted return, especially when evaluating strategies that seek to avoid major declines in portfolio value (market timing, dynamic asset allocation, hedge funds, etc.). The Ulcer Index was originally developed in 1987. Since then, it has been widely recognized and adopted by the investment community. According to Nelson Freeburg, editor of Formula Research, Ulcer Index is “perhaps the most fully realized statistical portrait of risk there is.'

Which means for our asset as example:- Compared with the benchmark SPY (9.32 ) in the period of the last 5 years, the Ulcer Ratio of 11 of World Countries Asia is greater, thus worse.
- During the last 3 years, the Downside risk index is 14 , which is greater, thus worse than the value of 10 from the benchmark.

'Maximum drawdown is defined as the peak-to-trough decline of an investment during a specific period. It is usually quoted as a percentage of the peak value. The maximum drawdown can be calculated based on absolute returns, in order to identify strategies that suffer less during market downturns, such as low-volatility strategies. However, the maximum drawdown can also be calculated based on returns relative to a benchmark index, for identifying strategies that show steady outperformance over time.'

Which means for our asset as example:- Looking at the maximum reduction from previous high of -29.3 days in the last 5 years of World Countries Asia, we see it is relatively larger, thus better in comparison to the benchmark SPY (-33.7 days)
- Compared with SPY (-24.5 days) in the period of the last 3 years, the maximum drop from peak to valley of -29.3 days is smaller, thus worse.

'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.'

Which means for our asset as example:- Looking at the maximum time in days below previous high water mark of 434 days in the last 5 years of World Countries Asia, we see it is relatively lower, thus better in comparison to the benchmark SPY (488 days)
- Compared with SPY (488 days) in the period of the last 3 years, the maximum days under water of 434 days is lower, thus better.

'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:- Compared with the benchmark SPY (123 days) in the period of the last 5 years, the average days below previous high of 101 days of World Countries Asia is lower, thus better.
- Compared with SPY (177 days) in the period of the last 3 years, the average time in days below previous high water mark of 149 days is lower, thus better.

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 Asia are hypothetical and do not account for slippage, fees or taxes.
- Results may be based on backtesting, which has many inherent limitations, some of which are described in our Terms of Use.