Below is a brief performance overview of our Active Indexes through June 2017. AlphaClone’s Active indexes combine all the benefits of passive investing while still seeking to outperform the overall market over time.
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Performance Highlights – June 2017
Hedge Fund Downside Hedged Index (ALPHACLN).;
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+13.4% YTD vs. +9.3% for the S&P 500 (SPY)
The index outperformed the broader market for the month of June (1.8% vs 0.6% for the S&P 500) and continues to outperform by a wide margin for the year. Index performance during the month was largely driven by a rebound in financial (overweight) and healthcare (underweight) stocks.
International Downside Hedged Index (ALFIIX).
+20.5% YTD vs +14.0% for the MSCI AC World ex-USA (ACWX).
The index outperformed the broader international market for the month of June (0.7% vs 0.2%). Performance during the month was extremely diversified with the five top performing holdings each from a different sector. Teva Pharmaceutical, Alibaba Group and Vale SA contributed the most to performance during the month.
Small Cap Index (ALFSIX).
+8.9% YTD vs. +5.0% for the Russell 2000 Index (IWM)
For the first time this year, small cap stocks outperformed large cap stocks for the month with IWM returning 3.5% for the month (vs. 0.6% for the S&P 500). Despite the the Russell 2000’s strong performance on the month, the index was able to return 5% in June and has returned nearly double the benchmark year to date. The index’s two largest sector weightings are also amongst the year’s best performers: Services and Technology.
Activist Manager Index (ALFDIX).
+14.1% YTD vs. +9.3% for the S&P 500 Index (SPY)
The Index outperformed for the month of June by a wide margin (2.3% vs 0.6% for the S&P 500) and continues to outpace the broader market for the year. Performance in the index is largely driven by overweight exposure to healthcare stocks, the year’s best performing sector so far.
Value Manager Index (ALFVIX).
+12.4% YTD vs. +4.5% for the Vanguard Value ETF (VTV).
While index performance this year has been driven primarily by consumer goods, services and technology names. The index’s outperformance in June (2.3% vs. 0.6% for the S&P 500) was primarily driven by financial and healthcare stocks.
Index Performance – June 2017
AlphaClone active index construction process
Active Indexing Investment Case
What is an active index?
Active indexes offer the benefits of index funds while still seeking to outperform the overall market
Why should I consider active indexing?
Over the long term, active indexing has outperformed both the market and traditional active funds
How can I use active indexing in my portfolio?
Use active indexes to diversify your investment style exposure while avoiding the inefficiency and high fees of traditional active funds.
Allocating to active indexes can improve your portfolio’s long-term results
AlphaClone Mirror Portfolio vs Traditional Passive Portfolio
Total Returns; Rebalanced Annually; 12/2006 through 6/2017
Controlling costs is one of the most important determinants of investment success
The table below summarizes the average fees for a model moderate risk portfolio that invests $500,000. Fees for the average traditional advisor and fund expenses comes from the 2016 InvestmentNews Financial Study of Advisory Firms, a survey of 500+ RIAs. Fees for Betterment come from an analysis conducted by Investor Junkie.
How to Invest
Mirror Portfolios make it easy to incorporate active indexing into your portfolio
See the full PDF below.