Explorer

NON-U.S. ECONOMIES-ESPECIALLY EMERGING MARKETS-MAY OFFER FASTER RATES OF ECONOMIC GROWTH THAN THE UNITES STATES.

Strategy Description

Investing in Emerging markets offers great opportunities for growth but also often entails greater risk.  Our Explorer model offers a risk-managed approach to be invested in not only broad-based Emerging markets themes but also the ability to invest in individual country ETFs.  

This strategy gives the investor exposure to the best performing ETFs in this asset class while still employing our “downside risk protector” strategy to move into cash or fixed income securities during down markets.

Definitions

Sharpe Ratio – the average return earned in excess of the risk-free rate.  A higher Sharpe Ration is better

Risk-Free Rate – represents the interest an investor would expect from an absolutely risk-free investment over a specified period of time.

Sortino Ratio – another measure of risk that takes into account the downside deviation of the asset.  A higher Sortino Ratio is better.

What is Drawdown?

Drawdown is the measure from the highest high to the lowest low or peak to trough during a specific time period.  It is an important measurement of risk.  A larger drawdown requires a more significant increase in the security to recover.

Volatility measures the change in the price of an investment.  The higher the volatility, the higher the difference between the high and the low of an investment’s price.

The 12 Month Rolling ROR is the compound rate of return for the last 12 months.  The rate of return is the gain or loss on an investment over a specified time period, expressed as a percentage of the investment’s cost.
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