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

'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:- The total return, or performance over 5 years of World Countries Developed is 85.6%, which is greater, thus better compared to the benchmark SPY (65.6%) in the same period.
- Looking at total return in of 70.1% in the period of the last 3 years, we see it is relatively higher, thus better in comparison to SPY (48.8%).

'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 (10.6%) in the period of the last 5 years, the annual performance (CAGR) of 13.2% of World Countries Developed is larger, thus better.
- Compared with SPY (14.2%) in the period of the last 3 years, the annual performance (CAGR) of 19.4% is larger, 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.'

Which means for our asset as example:- Looking at the volatility of 12.8% in the last 5 years of World Countries Developed, we see it is relatively lower, thus better in comparison to the benchmark SPY (13.6%)
- Looking at 30 days standard deviation in of 10.8% in the period of the last 3 years, we see it is relatively lower, thus better in comparison to SPY (12.8%).

'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 volatility over 5 years of World Countries Developed is 14.8%, which is lower, thus better compared to the benchmark SPY (15%) in the same period.
- Compared with SPY (14.6%) in the period of the last 3 years, the downside risk of 13.3% is smaller, thus better.

'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 0.83 in the last 5 years of World Countries Developed, we see it is relatively higher, thus better in comparison to the benchmark SPY (0.6)
- During the last 3 years, the risk / return profile (Sharpe) is 1.57, which is larger, thus better than the value of 0.91 from the benchmark.

'The Sortino ratio measures the risk-adjusted return of an investment asset, portfolio, or strategy. It is a modification of the Sharpe ratio but penalizes only those returns falling below a user-specified target or required rate of return, while the Sharpe ratio penalizes both upside and downside volatility equally. Though both ratios measure an investment's risk-adjusted return, they do so in significantly different ways that will frequently lead to differing conclusions as to the true nature of the investment's return-generating efficiency. The Sortino ratio is used as a way to compare the risk-adjusted performance of programs with differing risk and return profiles. In general, risk-adjusted returns seek to normalize the risk across programs and then see which has the higher return unit per risk.'

Which means for our asset as example:- The downside risk / excess return profile over 5 years of World Countries Developed is 0.72, which is higher, thus better compared to the benchmark SPY (0.54) in the same period.
- Looking at ratio of annual return and downside deviation in of 1.27 in the period of the last 3 years, we see it is relatively larger, thus better in comparison to SPY (0.8).

'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:- Compared with the benchmark SPY (4.03 ) in the period of the last 5 years, the Ulcer Index of 6.54 of World Countries Developed is higher, thus worse.
- Looking at Ulcer Index in of 2.78 in the period of the last 3 years, we see it is relatively smaller, thus better in comparison to SPY (4.1 ).

'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:- 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)
- Looking at maximum reduction from previous high in of -11.5 days in the period of the last 3 years, we see it is relatively greater, thus better 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.'

Applying this definition to our asset in some examples:- Looking at the maximum days below previous high of 395 days in the last 5 years of World Countries Developed, we see it is relatively higher, thus worse in comparison to the benchmark SPY (187 days)
- Looking at maximum time in days below previous high water mark in of 158 days in the period of the last 3 years, we see it is relatively higher, thus worse in comparison to SPY (139 days).

'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.'

Applying this definition to our asset in some examples:- Looking at the average days below previous high of 90 days in the last 5 years of World Countries Developed, we see it is relatively higher, thus worse in comparison to the benchmark SPY (41 days)
- Compared with SPY (35 days) in the period of the last 3 years, the average days under water of 31 days is smaller, thus better.

Historical returns have been extended using synthetic data.
[Show Details]

Allocations and holdings shown below are delayed by one month. To see current trading allocations of World Countries Developed, register now.

()

- "Year" returns in the table above are not equal to 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.