The Japanese Equity ETF (JAPN.TO) has performed well within the SIA Hypothetical 5 CAD ETF Sector Model. Since purchasing 15,901 units at $37.37 on July 5, 2023, the units have increased to $48.44, reflecting a gain of 29.62% before fees. Ranked #28 in the SIA Global Equity ETF Sector Report, JAPN.TO holds a SMAX rating of 7 out of 10, indicating strong relative strength in both the short and long term compared to other asset classes and peers. Following a summer flash crash that caused a temporary dip into the low $40s, the ETF found solid support and is now in a consolidation phase, forming a bullish triangle pattern. Current resistance is at $53.57, while support levels are at $43.94 and $40.60. This pullback has tested the SIA platform and highlighted the importance of staying committed to high relative strength areas. Overall, the outlook remains positive, suggesting potential for continued upward movement.
Turning to the SIA Hypothetical 5 CAD ETF Sector Model, it's important to outline the selection process for the ETFs included. This model is designed for advisor use only and recommends the top five relative strength-ranked ETFs, one from each of the top five sectors. The model is rebalanced and monitored on a quarterly basis, ensuring that only ETFs in the top five relative strength sectors are included. During each quarterly update, if an ETF drops below the "Favored" zone, it is sold. The model then recommends purchasing the top-ranked fund within that sector universe that has a SMAX score of 6 or higher. Funds remain in the model if their sector is still ranked within the top five and if they remain in the Favored zone according to their respective sector report. All evaluations are conducted with a 4% Matrix Sensitivity, and leveraged or inverse sectors, as well as US Currency ETFs, are excluded from this strategy. The performance of this selection process has been impressive. Since its inception on January 2, 2013, the SIA Hypothetical Model has gained 270%, significantly outperforming the SIA CAD 60/40 Balanced benchmark, which has risen by 180%. The model boasts a Compound Annual Growth Rate (CAGR) of 11.81%, compared to 9.18% for the benchmark, even in light of a -6.20% decline over the last three months. Additionally, the model has an Alpha of 2.28 and a Beta of 0.51, while the benchmark has an Alpha of -0.24 and a Beta of 0.53. Notably, the average monthly gain for the model is 3.08%, compared to 2.17% for the SIA 60/40 Balanced benchmark.
Disclaimer: SIACharts Inc. specifically represents that it does not give investment advice or advocate the purchase or sale of any security or investment whatsoever. This information has been prepared without regard to any particular investors investment objectives, financial situation, and needs. None of the information contained in this document constitutes an offer to sell or the solicitation of an offer to buy any security or other investment or an offer to provide investment services of any kind. As such, advisors and their clients should not act on any recommendation (express or implied) or information in this report without obtaining specific advice in relation to their accounts and should not rely on information herein as the primary basis for their investment decisions. Information contained herein is based on data obtained from recognized statistical services, issuer reports or communications, or other sources, believed to be reliable. SIACharts Inc. nor its third party content providers make any representations or warranties or take any responsibility as to the accuracy or completeness of any recommendation or information contained herein and shall not be liable for any errors, inaccuracies or delays in content, or for any actions taken in reliance thereon. Any statements nonfactual in nature constitute only current opinions, which are subject to change without notice.
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