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

'The total return on a portfolio of investments takes into account not only the capital appreciation on the portfolio, but also the income received on the portfolio. The income typically consists of interest, dividends, and securities lending fees. This contrasts with the price return, which takes into account only the capital gain on an investment.'

Applying this definition to our asset in some examples:- The total return, or performance over 5 years of World Countries Asia is 113.4%, which is greater, thus better compared to the benchmark SPY (68.2%) in the same period.
- Looking at total return, or performance in of 35.5% in the period of the last 3 years, we see it is relatively lower, thus worse in comparison to SPY (47.7%).

'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:- Looking at the compounded annual growth rate (CAGR) of 16.4% in the last 5 years of World Countries Asia, we see it is relatively larger, thus better in comparison to the benchmark SPY (11%)
- Compared with SPY (13.9%) in the period of the last 3 years, the compounded annual growth rate (CAGR) of 10.6% is lower, thus worse.

'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:- The 30 days standard deviation over 5 years of World Countries Asia is 26.8%, which is greater, thus worse compared to the benchmark SPY (13.2%) in the same period.
- Looking at historical 30 days volatility in of 18% in the period of the last 3 years, we see it is relatively greater, thus worse in comparison to SPY (12.4%).

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

Using this definition on our asset we see for example:- The downside deviation over 5 years of World Countries Asia is 27.9%, which is higher, thus worse compared to the benchmark SPY (14.6%) in the same period.
- Looking at downside volatility in of 19.6% in the period of the last 3 years, we see it is relatively greater, thus worse in comparison to SPY (14%).

'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 Sharpe Ratio of 0.52 in the last 5 years of World Countries Asia, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (0.64)
- During the last 3 years, the ratio of return and volatility (Sharpe) is 0.45, which is lower, thus worse than the value of 0.92 from the benchmark.

'The Sortino ratio, a variation of the Sharpe ratio only factors in the downside, or negative volatility, rather than the total volatility used in calculating the Sharpe ratio. The theory behind the Sortino variation is that upside volatility is a plus for the investment, and it, therefore, should not be included in the risk calculation. Therefore, the Sortino ratio takes upside volatility out of the equation and uses only the downside standard deviation in its calculation instead of the total standard deviation that is used in calculating the Sharpe ratio.'

Applying this definition to our asset in some examples:- Compared with the benchmark SPY (0.58) in the period of the last 5 years, the downside risk / excess return profile of 0.5 of World Countries Asia is lower, thus worse.
- During the last 3 years, the excess return divided by the downside deviation is 0.42, which is smaller, thus worse than the value of 0.81 from the benchmark.

'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.'

Applying this definition to our asset in some examples:- The Downside risk index over 5 years of World Countries Asia is 22 , which is larger, thus better compared to the benchmark SPY (3.95 ) in the same period.
- During the last 3 years, the Downside risk index is 10 , which is higher, thus better than the value of 4 from the benchmark.

'A maximum drawdown is the maximum loss from a peak to a trough of a portfolio, before a new peak is attained. Maximum Drawdown is an indicator of downside risk over a specified time period. It can be used both as a stand-alone measure or as an input into other metrics such as 'Return over Maximum Drawdown' and the Calmar Ratio. Maximum Drawdown is expressed in percentage terms.'

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 reduction from previous high of -38.6 days of World Countries Asia is smaller, 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 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:- The maximum days below previous high over 5 years of World Countries Asia is 697 days, which is larger, thus worse compared to the benchmark SPY (187 days) in the same period.
- Compared with SPY (131 days) in the period of the last 3 years, the maximum days under water of 242 days is larger, thus worse.

'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.'

Which means for our asset as example:- The average days under water over 5 years of World Countries Asia is 232 days, which is greater, thus worse compared to the benchmark SPY (39 days) in the same period.
- Looking at average days below previous high in of 78 days in the period of the last 3 years, we see it is relatively higher, thus worse in comparison to SPY (33 days).

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.