Posted on 07/08/2014
With the ever-growing interest and participation in ETFs, it has been our preference to use our inventory of ETFs to better describe what happened within the major asset classes each quarter. Since the universe of ETFs have grown to well over 1,500 funds, we have taken the liberty to impose a few filters on the performance tables below. We have removed leveraged and inverse funds entirely, as well as funds with very little volume and/or assets (<10,000 shares 30-day avg vol and <$25 mil AUM, generally). We have also removed funds from the same sub-sector in order to alleviate any significant redundancy in the performance rankings. For instance, if there were similar Utilities funds or municipal bond ETFs, then we only left one or two in the quarterly rankings. The returns below exclude dividends, and include market data from 12/31/13 to 6/30/14.
The last quarter was a strong period for Equity Income portfolios as the Global X SuperDividend ETF [DIV] led all others in this category with gains of 8.62%, and many of the other performance leaders came from dividend-heavy strategies (despite dividends being excluded from the returns below). DIV and the Alps Sector Dividend Dogs [SDOG] both made the list of top-performers for the quarter and YTD, with DIV doubling the performance of the S&P SPDRs for the year.
The worst performance came, unquestionably, from Small Cap elements of the US Equity market. While this was a strong aspect of the market last year, it was among the only to produce losses last quarter. The handful of "market-based" securities that are down for the year are all Small Cap focused portfolios.