There are no changes to be made within any of the Dorsey Wright State Street Models this week, as each of the current holdings continue to maintain positive relative strength within their respective universes. Today we review Q4 and 2016 performance for the State Street Models.
There are no changes to be made within any of the Dorsey Wright State Street Models this week, as each of the current holdings continue to maintain positive relative strength within their respective universes. Today we review Q4 and 2016 performance for the State Street Models.
4th Quarter 2016 Review
The State Street Sector Rotation Model SSTREET experienced nine changes throughout Q4 while the State Street Fixed Income Model SSFIXED experienced two. Both the State Street Global Sector Rotation Model SSTREETGLOSECT and the State Street International Sector Rotation Model SSINTLSECT experienced one change over the final quarter of 2016 while the State Street Global Rotation Model SSWORLD did not experience any changes.
The State Street Sector Rotation Model SSTREET experienced a whopping nine changes throughout the fourth quarter, with the Model adding exposure to the following sectors: Banks KBE, Regional Banking KRE, Oil & Gas Equipment & Services XES, Financials XLF, Telecom XTL, and Transportation XTN. The Model continues to remain allocated towards those ETFs within the universe which demonstrate superior relative strength to the broad market. The Portfolio itself was up 1.77% in Q4 (vs. 3.25% for the S&P 500 Index SPX). The Model posted a gain of 10.47% for 2016, beating the SPX which was up 9.54%.
The State Street Global Rotation Model SSWORLD did not experience any changes over this past quarter and maintains its exposure to the SPDR S&P 500 ETF Trust SPY, the SPDR S&P Russia ETF RBL, and the SPDR MSCI EAFE StrategicFactors ETF QEFA. The Model was up 4.55% this quarter, compared to the return of -3.04% for its benchmark, the SPDR MSCI ACWI ex-US ETF CWI. SSWORLD posted a gain of 5.96% for 2016 compared to 2.24% for the benchmark, CWI.
The State Street Global Sector Rotation Model SSTREETGLOSECT experienced one change in Q4, with the Model adding exposure to Technology (MTK) while removing exposure to Consumer Discretionary (XLY) in late October. The Portfolio itself was up 7.50% in Q4 versus -0.71% for the benchmark, the MSCI World ex US Index MSCIWORLDXUS. Over 2016, the Model was posted a gain of 14.75%, compared to MSCIWORLDXUS which was flat at -0.13%.
The State Street International Sector Rotation Model SSINTLSECT had one change last quarter which was to buy the SPDR S&P International Technology Sector IPK and sell the SPDR S&P International Health Care Sector IRY. The Model finished the quarter in the red, down -4.17% while the benchmark, the SPDR MSCI ACWI ex-US ETF CWI, was down -3.04%. The Model finished the year down -3.45% while CWI posted a gain of 2.24%.
Finally, the State Street Fixed Income Model SSFIXED experienced two changes throughout the fourth quarter. The first change came in early November which sold the SPDR Bloomberg Barclays Long Term Treasury ETF TLO and purchased the SPDR Bloomberg Barclays High Yield Bond ETF JNK. The second change sold the SPDR Bloomberg Barclays Emerging Markets Local Bond ETF EBND and bought the SPDR Bloomberg Barclays Intermediate Term Credit Bond ETF ITR. The Model posted a loss of -5.13% in Q4 while the iShares US Core Bond ETF AGG was down -3.88%. For 2016, the Model posted a loss of -0.55% while the AGG was flat at 0.05%.
The performance numbers above a price return is not inclusive of dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss.
