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

SPY SPDR S&P 500 ETF

DIA SPDR Dow Jones Industrial Average ETF

EIRL iShares MSCI Ireland Capped

EIS iShares MSCI Israel

ENZL iShares MSCI New Zealand Investable Market

EPOL iShares MSCI Poland Index

EWA iShares MSCI Australia Index Fund

EWC iShares MSCI Canada Index Fund

EWD iShares MSCI Sweden Index

EWG iShares MSCI Germany Index

EWH iShares MSCI Hong Kong Index Fund

EWI iShares MSCI Italy Index

EWJ iShares MSCI Japan Index Fund

EWK iShares MSCI Belgium Index

EWL iShares MSCI Switzerland

EWM iShares MSCI Malaysia Index Fund

EWN iShares MSCI Netherlands Index

EWO iShares MSCI Austria Index

EWP iShares MSCI Spain Index

EWQ iShares MSCI France

EWU iShares MSCI United Kingdom Index

NORW Global X FTSE Norway 30 ETF

QQQ PowerShares Nasdaq-100 Index

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 over 5 years of World Countries Developed is 91.5%, which is higher, thus better compared to the benchmark SPY (67.6%) in the same period.
- During the last 3 years, the total return, or increase in value is 65%, which is greater, thus better than the value of 51.3% 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:- Compared with the benchmark SPY (10.9%) in the period of the last 5 years, the annual performance (CAGR) of 13.9% of World Countries Developed is greater, thus better.
- Compared with SPY (14.8%) in the period of the last 3 years, the annual return (CAGR) of 18.2% is higher, thus better.

'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:- Compared with the benchmark SPY (13.5%) in the period of the last 5 years, the 30 days standard deviation of 12.6% of World Countries Developed is lower, thus better.
- Compared with SPY (12.8%) in the period of the last 3 years, the 30 days standard deviation of 10.6% is lower, thus better.

'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:- Compared with the benchmark SPY (14.8%) in the period of the last 5 years, the downside risk of 14.6% of World Countries Developed is lower, thus better.
- Compared with SPY (14.7%) in the period of the last 3 years, the downside risk of 13.1% is smaller, thus better.

'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.'

Using this definition on our asset we see for example:- Looking at the risk / return profile (Sharpe) of 0.91 in the last 5 years of World Countries Developed, we see it is relatively larger, thus better in comparison to the benchmark SPY (0.62)
- Looking at Sharpe Ratio in of 1.49 in the period of the last 3 years, we see it is relatively larger, thus better in comparison to SPY (0.96).

'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:- Looking at the downside risk / excess return profile of 0.78 in the last 5 years of World Countries Developed, we see it is relatively larger, thus better in comparison to the benchmark SPY (0.57)
- Compared with SPY (0.84) in the period of the last 3 years, the ratio of annual return and downside deviation of 1.2 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 Developed is 6.46 , which is larger, thus worse compared to the benchmark SPY (3.99 ) in the same period.
- Compared with SPY (4.1 ) in the period of the last 3 years, the Downside risk index of 2.81 is lower, thus better.

'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.'

Using this definition on our asset we see for example:- Looking at the maximum DrawDown of -23.4 days in the last 5 years of World Countries Developed, we see it is relatively smaller, thus worse in comparison to the benchmark SPY (-19.3 days)
- During the last 3 years, the maximum reduction from previous high is -11.5 days, which is larger, thus better than the value of -19.3 days from the benchmark.

'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.'

Which means for our asset as example:- The maximum days below previous high over 5 years of World Countries Developed is 395 days, which is higher, thus worse compared to the benchmark SPY (187 days) in the same period.
- During the last 3 years, the maximum days under water is 158 days, which is greater, thus worse than the value of 139 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:- The average days below previous high over 5 years of World Countries Developed is 90 days, which is greater, thus worse compared to the benchmark SPY (42 days) in the same period.
- Looking at average days below previous high in of 31 days in the period of the last 3 years, we see it is relatively lower, thus better in comparison to SPY (36 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 Developed 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.