The World Country Top 4 Strategy is a momentum driven strategy that invests in the top four single country ETFs. It will add geographic diversity to your portfolio with significant non-U.S. equity exposure.

The strategy consists of four sub-strategies. Each sub-strategy invests in the best country ETF in a specific geographic area (i.e., Africa, Asia, Latin America, etc). These strategies are then combined to yield four country ETFs that come from different geographic segments, thus avoiding overconcentration. So even if one region is outperforming all the other areas, this strategy will still diversify among three additional top performing regions.

Like our other equity-based strategies, this strategy is hedged with a sub-strategy (HEDGE) that includes, amongst others, safe heaven assets like treasuries and gold.

Country ETFs:

- AFK Market Vectors Africa Index
- ASHR Deutsche X-Trackers CSI 300 China A Shares
- ECH iShares MSCI Chile Fund
- EGPT Market Vectors Egypt Index
- EIDO iShares MSCI Indonesia Index
- EIRL iShares MSCI Ireland Capped
- EIS iShares MSCI Israel
- ENZL iShares MSCI New Zealand Investable Market
- EPHE iShares MSCI Philippines
- EPI WisdomTree India Earnings Index
- EPOL iShares MSCI Poland Index
- EPU iShares MSCI Peru 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
- EWS iShares MSCI Singapore Index
- EWT iShares MSCI Taiwan Index Fund
- EWU iShares MSCI United Kingdom Index
- EWW iShares MSCI Mexico Index Fund
- EWY iShares MSCI South Korea Index Fund
- EWZ iShares MSCI Brazil Index Fund
- EZA iShares MSCI South Africa Index
- FM iShares MSCI Frontier Markets ETF
- FRN Guggenheim BNY Mellon Frontier Mkts
- FXI iShares FTSE China 25 Index Fund
- GAF SPDR S&P E.M. Middle East & Africa
- GULF WisdomTree Middle East Dividend Index
- GREK Global X FTSE Greece 20
- GXG Global X Interbolsa FTSE Colombia 20
- IDX Market Vectors Indonesia
- MCHI iShares MSCI China Index
- MES Market Vectors DJ Gulf States (GCC) Titans
- NORW Global X FTSE Norway 30 ETF
- QQQ PowerShares Nasdaq-100 Index
- RSX Market Vectors DAXglobal Russia
- THD iShares MSCI Thailand Index
- TUR iShares MSCI Turkey
- VNM Market Vectors Vietnam

'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 investmentâ€™s overall performance.'

Using this definition on our asset we see for example:- The total return over 5 years of World Top 4 Strategy is 94.1%, which is larger, thus better compared to the benchmark ACWI (53.8%) in the same period.
- Compared with ACWI (16.5%) in the period of the last 3 years, the total return, or increase in value of 38.1% is higher, thus better.

'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.'

Which means for our asset as example:- Looking at the compounded annual growth rate (CAGR) of 14.2% in the last 5 years of World Top 4 Strategy, we see it is relatively larger, thus better in comparison to the benchmark ACWI (9%)
- Compared with ACWI (5.3%) in the period of the last 3 years, the annual return (CAGR) of 11.4% is greater, 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:- The volatility over 5 years of World Top 4 Strategy is 8.1%, which is lower, thus better compared to the benchmark ACWI (20.2%) in the same period.
- During the last 3 years, the 30 days standard deviation is 6.9%, which is lower, thus better than the value of 16.7% from the benchmark.

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

Which means for our asset as example:- Compared with the benchmark ACWI (14.7%) in the period of the last 5 years, the downside volatility of 5.7% of World Top 4 Strategy is lower, thus better.
- During the last 3 years, the downside deviation is 4.6%, which is lower, thus better than the value of 11.6% from the benchmark.

'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.'

Applying this definition to our asset in some examples:- Compared with the benchmark ACWI (0.32) in the period of the last 5 years, the ratio of return and volatility (Sharpe) of 1.44 of World Top 4 Strategy is higher, thus better.
- Compared with ACWI (0.17) in the period of the last 3 years, the ratio of return and volatility (Sharpe) of 1.29 is larger, thus better.

'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.'

Using this definition on our asset we see for example:- Looking at the ratio of annual return and downside deviation of 2.05 in the last 5 years of World Top 4 Strategy, we see it is relatively higher, thus better in comparison to the benchmark ACWI (0.44)
- During the last 3 years, the ratio of annual return and downside deviation is 1.95, which is higher, thus better than the value of 0.24 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.'

Using this definition on our asset we see for example:- The Ulcer Index over 5 years of World Top 4 Strategy is 2.69 , which is smaller, thus better compared to the benchmark ACWI (10 ) in the same period.
- Compared with ACWI (11 ) in the period of the last 3 years, the Ulcer Index of 2.84 is smaller, 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.'

Applying this definition to our asset in some examples:- Looking at the maximum reduction from previous high of -14.6 days in the last 5 years of World Top 4 Strategy, we see it is relatively greater, thus better in comparison to the benchmark ACWI (-33.5 days)
- Looking at maximum drop from peak to valley in of -8.1 days in the period of the last 3 years, we see it is relatively greater, thus better in comparison to ACWI (-26.4 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 under water of 247 days in the last 5 years of World Top 4 Strategy, we see it is relatively smaller, thus better in comparison to the benchmark ACWI (478 days)
- During the last 3 years, the maximum days under water is 247 days, which is lower, thus better than the value of 478 days from the benchmark.

'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.'

Which means for our asset as example:- Looking at the average days under water of 44 days in the last 5 years of World Top 4 Strategy, we see it is relatively lower, thus better in comparison to the benchmark ACWI (117 days)
- Compared with ACWI (171 days) in the period of the last 3 years, the average days below previous high of 59 days is smaller, 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 Top 4 Strategy 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.