The Irrefutable Story of Financial Results

The Numbers Don’t Lie

Very few things in life are as irrefutable as numbers. Sure, statistics can be manipulated to support all sorts of claims (witness the political realm). But when it comes to pure numeric performance, well, the numbers don’t lie.

This week, I ran some numbers on the performance of some of the biggest exchange-traded funds (ETFs) here in the United States vs. some of the biggest ETFs around the world. Admittedly, this is a cross section of ETFs, some of which I look at each day to get a quick read on the markets.

Here are the top-five domestic ETF performers, year to date, that I monitor daily.

TICKER Name 1MO% 3MO% YTD%
QQQ PowerShares QQQ 2.42 6.02 7.06
MDY S&P MidCap 400 SPDRs 0.38 5.59 5.83
IWM iShares Russell 2000 Index 0.15 6.71 5.37
IJR iShares S&P SmallCap 600 Index -0.59 6.03 4.36
SPY S&P 500 SPDRs 1.45 3.35 3.07

As you can see, each has had solid performance this year, with the tech-heavy PowerShares QQQ (QQQ) leading the charge higher, up a strong 7.06%.

I was happy about this situation, as I own QQQ in our Successful ETF Investing portfolio.

I then ran the numbers on the big international ETFs that I screen on a daily basis. One look at this segment made me even happier.

TICKER Name 1MO% 3MO% YTD%
FXI iShares FTSE/Xinhua China 25 20.73 18.66 24.74
EWJ iShares MSCI Japan Index 3.47 15.92 18.19
EEB Claymore BNY BRIC 12.48 6.75 13.55
EEM iShares MSCI Emerg Mkts Index 8.61 7.54 11.57
EFA iShares MSCI EAFE Index Fund 2.34 9.83 10.77

Here we see that year to date, the iShares FTSE/Xinhua 25 Index (FXI), the benchmark fund for China’s large-cap stocks, has more than tripled the gains of the QQQ.

Now, if you’re a subscriber to Successful ETF Investing, you know we’ve been recommending FXI for some time, as well as another big winner on this list, the iShares MSCI EAFE Index Fund (EFA).

There are many reasons why international stocks are outperforming domestic stocks, and we’ll be writing more about that in greater detail in the weeks to come.

For now, it’s sufficient to say that international stocks aren’t facing the kinds of big headwinds domestic stocks are facing right now — headwinds that include a strong U.S. dollar, slow earnings growth and the end of quantitative easing (QE) by the Federal Reserve.

So, how do you know which international funds to own right now, and which ones to avoid? How about the best domestic funds? Do you know which sectors are likely to outpace the rest in 2015?

If you have questions such as these, then you need to check out my Successful ETF Investing newsletter, right now.

Spinoza’s History Lesson

“If you want the present to be different from the past, study the past.”

–Baruch Spinoza

The brilliant philosopher offers us a simple, yet elegant, prescription for success in any walk of life. Applied to your investment decisions, Spinoza’s history lesson can save you from financial loss — and likely make you a lot of money.

Wisdom about money, investing and life can be found anywhere. If you have a good quote you’d like me to share with your fellow Weekly ETF Report readers, send it to me, along with any comments, questions and suggestions you have about my audio podcast, newsletters, seminars or anything else. Ask Doug.

In case you missed it, I encourage you to read my e-letter column from last week on Eagle Daily Investor about global reactions to the bull market. I also invite you to comment in the space provided below my commentary.

Upcoming Appearance

I invite you to join me at the MoneyShow Las Vegas, May 12-14, 2015. With stock picking taking on renewed importance as the market shows signs of volatility, this event offers an opportunity to hear from a number of experts, including my Eagle Financial Publications colleagues Mark Skousen, Chris Versace and Bryan Perry.

Be a guest of Eagle Financial Publications and register for FREE by using priority code 038656 and calling 800-970-4355 (toll free in the United States and Canada) or signing up online.

Doug Fabian

Doug Fabian is the Editor of Weekly ETF Report, a free weekly e-newsletter, and the newsletter Successful ETF Investing. He’s also the host of the syndicated radio show, “Doug Fabian’s Wealth Strategies.” Doug also edits the fast-paced trading service ETF Trader’s Edge, for investors who want to take their profits to the next level. Taking over the reins from his dad, Dick Fabian, back in 1992, Doug has continued to uphold the reputation of the newsletter as the #1 risk-adjusted market timer as ranked by Hulbert’s Investment Digest. Doug became a member of the “SmartMoney 30” in 1999 — a listing of the most influential individuals in the mutual fund industry. In the feature, SmartMoney magazine exclaims that Doug is the best-known “trend follower” among the $56 billion (and growing) group of financial advisors. In 2001, Doug wrote “Maverick Investing,” published by McGraw-Hill. He also regularly appears at seminars around the country, stands out on the pages of the largest newspapers (The Wall Street Journal, The Los Angeles Times, and The New York Times), and speaks on national television (CNBC, Fox News, and Bloomberg Forum). For more than 35 years, Successful ETF Investing (formerly the Telephone Switch Newsletter and Successful Investing) has produced double-digit percentage annual gains. Doug has become known for his expert knowledge and timely use of innovative tools, such as exchange-traded funds, bear funds, and enhanced-index funds to profit in any market climate. For more information about Doug’s services, go to http://www.fabian.com/

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