On May 27, 2015, the BetaShares Nasdaq 100 ETF began trading on the Australian Securities Exchange (ASX: NDQ). This is the first time that Australian investors have access to this prominent benchmark.
Rob Hughes, Vice President, Head of Index & Advisor Solutions at Nasdaq said: “We’re excited to partner with BetaShares on the first Nasdaq ETF to list in Australia. This exposes Australian investors to 100 of the world’s most dynamic companies, and is another milestone in the international expansion of investment products linked to Nasdaq indexes.”
International equities continue to be attractive to local ETF investors, and the new fund broadens the offerings available for investors looking for straightforward exposure to those securities.
The Nasdaq-100 Index includes the 100 largest, non-financial companies listed on the Nasdaq Stock Market and acts as a leading barometer for strong, growth companies at the forefront of innovation.
If the stock market continues to outperform, will your portfolios take advantage of that trend? If the market weakens relative to other asset classes, will your portfolios adapt? With portfolios tilted heavily toward domestic equities, after six consecutive years of positive returns, perhaps it is time to consider the merits of adaptive strategies with a multi-asset global perspective.
Join Dorsey Wright and Arrow Funds for a webinar featuring Andy Hyer, DWA Client Portfolio Manager and Jake Griffith, President of Arrow Investment Advisors, LLC, as they discuss the current market environment from a global relative strength perspective. The discussion included:
WATCH THE REPLAY HERE
- The DWA systematic approach for global tactical asset allocation
- An update on the Arrow DWA Balanced Fund and Arrow DWA Tactical Fund
- An update on the enhancements to DWA’s Sector Rotation strategy
The Dorsey Wright Focus Five Index launched in February 2014 and over the past year has outperformed the US markets by 13% on a price return basis. The Focus Five methodology is rooted in selecting the five highest ranked sector ETFs from First Trust’s ETF line-up based on the Dorsey Wright proprietary relative strength model. Relative strength is a momentum technique that relies on unbiased, unemotional and objective data, rather than biased forecasting and subjective research.
At its core, Focus Five is the embodiment of a sector rotation strategy and offers a broad market experience but enhances returns by only tracking the best performing sectors on a relative strength basis. Currently the sector rotation strategy is in Biotechnology, Internet, Consumer Staples, Health Care, and Consumer Discretion. It is clear that the market leader sectors are those focused on the individual – between consumer sectors and health care – and the individual has been a driving force on the market’s returns.
Focus Five has also generated this outperformance without generating significantly higher volatility than the broad market. The information ratio is a high 0.75 and the risk-adjusted return is significantly higher than the broad market.
March 2014 marked the one-year anniversary for the associated ETF, the First Trust Dorsey Wright Focus 5 ETF (FV).
Which five ETFs do you think should come into focus next?
*Source: Nasdaq as of May 8, 2015
The information contained above is provided for informational and educational purposes only, and nothing contained herein should be construed as investment advice, either on behalf of a particular security or an overall investment strategy. Neither Nasdaq nor any of its affiliates makes any recommendation to buy or sell any security or any representation about the financial condition of any company. Statements regarding Nasdaq-listed companies or Nasdaq proprietary indexes are not guarantees of future performance. The performance numbers above reflect the performance of an index. Indexes are not available for direct investment and do not contain fees. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. Actual results may differ materially from those expressed or implied. Investors should undertake their own due diligence and carefully evaluate companies before investing. ADVICE FROM A SECURITIES PROFESSIONAL IS STRONGLY ADVISED.
The Nasdaq Commodity Crude Oil ER Index is April's top performer at 21.8% and the OMX Helsinki 25 Index is the worst performer of April at -4.6%. Get a quick overview of Nasdaq Index performance data for our top 50 most watched indexes here.
Smart Beta investment strategies have seen a 24% compounded annual growth rate since 2010*. With investors clamoring for better performance, lower risk investments, ways to mitigate volatility, all while demanding reduced fees, how do you determine which strategies are right for your investments? The answer lies in selecting rules-based, transparent approaches that combine different smart beta factors.
In our latest web seminar, hosted by ETF.com, Dave Gedeon of Nasdaq and Jay Gregnani of Dorsey, Wright & Associates, which was acquired by Nasdaq earlier this year, join together to discuss “H20 Investing: Combining the Best Elements Within Smart Beta.” Both hydrogen and oxygen are famously combustible in many scenarios, but when combined appropriately, they create the most important compound for sustaining life as we know it. Gregnani will explain how combining some of the powerful return factors now available within the ETF space become even more useful when combined with the right complementary elements in the ETF world.
Click here to watch and/or download the webinar.