This document has been compiled using indicators provided by the Market-Signals trading bot which studies global market data. This document shows the evolution of the strategies proposed by the bot and gives the trends of a selection of ETFs, which follow the main world markets, for August 2023. The strategies hold only long positions. No leverage is used. This document is for information purposes only and should not be taken as investment advice.
Global Market Breadth
| Market | Trend | Direction |
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| US stock market |
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| US bond market |
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| US Treasuries |
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| US Real Estate |
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| Europe Equities |
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| Japan Equities |
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| Emerging Market Equities |
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| Gold |
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Portfolios
US Growth Portfolio
T
he portfolio US Growth continues its strong increase of 3.86% in July. We find a positive trend in the U.S. stock market, we assume a Risk-On market regime and the portfolio is allocated to a U.S. equity ETF. The asset allocation remains the same this month. The Exchange Traded Fund selected in the portfolio for this month is QQQ (100%). The portfolio trend for August is strongly positive with a Trend Score unchanged of 9 out of 10. The degree of risk of the strategy for August is low with a Risk Score unchanged of 3 out of 10.
The 1-year performance of this portfolio is 24.62%. Since opening the portfolio at eToro in November 2019, the strategy has performed 109.57%, in comparison, the benchmark asset (S&P 500) has advanced 60.20%. The strategy has suffered a maximum loss of 19.94% since the portfolio opened at eToro, compared to the benchmark asset (S&P 500) which lost 23.90% at maximum.
This strategy captures the U.S. stock market growth for long-term investors who want high returns.
Since inception at eToro
Max drawdown
Since inception at eToro
Portfolio: -19.94%
S&P 500: -23.90%
- eToro portfolio
US Balanced Portfolio
T
he portfolio US Balanced continues its strong rise of 3.10% in July. The strategy combines an allocation in US bonds (30%) with the US Growth portfolio (70%). The trend in the US bond market for August is bullish. The bond part contains the following 2 ETFs: LQD and JNK. The 3 ETFs of the portfolio for this month are QQQ (70%), LQD (15%) and JNK (15%). The portfolio trend for August is strongly positive with a Trend Score stable of 7 out of 10. The degree of risk of the strategy for August is low with a Risk Score in growth of 3 out of 10.
The 1-year trailing return of this strategy is 16.60%.
This strategy provides a balanced stocks and bonds allocation for investors who want a U.S. market exposure with limited risks.
Global Conservative Portfolio
T
he portfolio Global Conservative continues its strong rise of 3.05% last month. The Strategy combines a multi-market protective asset allocation strategy (Global Stable portfolio 70%) and a US stock market strategy (US Growth portfolio 30%). The 7 ETFs of the portfolio for this month are QQQ (39%), IEF (15%), SPY (9%), EEM (9%), EWJ (9%), VGK (9%) and EFA (9%). The portfolio trend for August is bullish with a Trend Score in progression of 6 out of 10. The level of risk of the strategy for August is low with a Risk Score steady of 3 out of 10.
The 1-year trailing return of this strategy is 9.71%.
This strategy provides a broad geographic diversification for investors who want an international exposure.
Global Stable Portfolio
T
he portfolio Global Stable continued to gain ground by 2.76% last month. The overall market trend for this month is measurably bullish. By analyzing a diverse multi-market composed of 12 ETFs (stocks, bonds, gold, real estate, international and emerging markets...), we observe that 11 securities show a positive evolution. Our model allocates 83% to Risk-On assets and 16% to Risk-Off assets. The 7 ETFs of the portfolio for this month are IEF (22%), EEM (13%), SPY (13%), EWJ (13%), VGK (13%), EFA (13%) and QQQ (13%). The portfolio trend for this month is positive with a Trend Score stable of 4 out of 10. The degree of risk of the strategy for August is low with a Risk Score steady of 3 out of 10.
The 1-year trailing return of this strategy is 4.37%.
This is the safest strategy, the one with the lowest volatility and the least max drawdown of the 4 offered, that makes this strategy an alternative to a 1-Year Term Deposit.
ETF Trends
QQQ Invesco QQQ
- Nasdaq 100
The QQQ ETF, which tracks the US tech sector, holds out its strong increase of 3.86% last month. The 1 year trailing return of this ETF is 21.59%. The trend in August is strongly positive with a Trend Score stable of 9 out of 10. The degree of risk of this ETF in August is low with a Risk Score stable of 3 out of 10. This ETF is present in the strategies US Growth, Global Stable, Global Conservative and US Balanced in August.
SPY SPDR S&P 500 ETF
- S&P 500
The SPY ETF, which follows the Standard & Poor's 500 Index, continues its strong increase of 3.27% last month. The performance over a period of 1 year of this ETF is 11.19%. The trend in this month is measurably bullish with a Trend Score in rise of 8 out of 10. The level of risk of this ETF in this month is low with a Risk Score constant of 3 out of 10. This ETF is invested in the strategies Global Stable and Global Conservative in August.
EWJ iShares MSCI JAPAN ETF
- Japan Equities
The EWJ ETF, which mimics the Japanese stock market, continued to gain ground by 2.46% in July. The 1 year trailing return of this equity is 12.50%. The trend in August is strongly positive with a Trend Score in growth of 7 out of 10. The degree of risk of this equity in August is low with a Risk Score in regression of 2 out of 10. This equity is invested in the portfolios Global Stable and Global Conservative in August.
IWM iShares Russell 2000 ETF
- US Small Cap Equities
The IWM Exchange-Traded Fund from iShares, which monitors the Russell 2000 Index, continues its strong rise of 6.11% last month. The performance over a period of 1 year of this ETF is 5.88%. The trend in this month is measurably bullish with a Trend Score in rise of 7 out of 10. The level of risk of this ETF in this month is medium with a Risk Score in rise of 4 out of 10.
MDY SPDR S&P Midcap 400
- Midcap 400
The MDY ETF, which mimics mid-cap U.S. stocks, continues its strong increase of 4.06% in July. The performance over a period of 1 year of this ETF is 8.73%. The trend in August is bullish with a Trend Score in rise of 6 out of 10. The degree of risk of this ETF in August is medium with a Risk Score in rise of 4 out of 10.
EEM iShares MSCI Emerging Markets ETF
- Emerging Market Equities
The EEM ETF, which follows a diversified exposure to emerging markets, continues its strong increase of 6.04% in July. The performance over a period of 1 year of this ETF is 5.13%. The trend in August is positive with a Trend Score in rise of 5 out of 10. The level of risk of this ETF in August is medium with a Risk Score in rise of 4 out of 10. This equity is invested in the portfolios Global Stable and Global Conservative in August.
VNQ Vanguard Real Estate ETF
- US Real Estate
The VNQ ETF, which mimics stocks issued by real estate investment trusts (REITs), continued to gain ground by 2.03% last month. The 1 year trailing return of this ETF is -13.27%. The trend in this month is bullish with a Trend Score in progression of 4 out of 10. The degree of risk of this ETF in this month is low with a Risk Score stable of 3 out of 10.
EFA iShares MSCI EAFE ETF
- Europe, Australia and Far East Equities
The EFA Exchange-Traded Fund from iShares, which tracks markets in Europe, Australia and the Far East, continued to gain ground by 2.70% in July. The 1 year trailing return of this Exchange-Traded Fund is 13.85%. The trend in August is weakly positive with a Trend Score in rise of 3 out of 10. The degree of risk of this Exchange-Traded Fund in August is medium with a Risk Score in rise of 4 out of 10. This ETF is present in the strategies Global Stable and Global Conservative this month.
GLD SPDR Gold
- Gold
The GLD ETF, which replicates the price of gold, shifted upwards 2.29% in July. The performance over a period of 1 year of this ETF is 10.98%. The trend in August is lightly positive with a Trend Score steady of 2 out of 10. The degree of risk of this ETF in August is low with a Risk Score steady of 2 out of 10.
JNK SPDR Bloomberg High Yield Bond
- High Yield Bonds
The JNK Exchange-Traded Fund, which tracks the Bloomberg Barclays US High Yield index, continued to gain ground by 0.78% last month. The evolution of the performance of this ETF over 1 year is -4.17%. The trend in this month is lightly bullish with a Trend Score in progression of 2 out of 10. The degree of risk of this ETF in this month is low with a Risk Score in progression of 2 out of 10. This ETF is present in the strategy US Balanced this month.
VGK Vanguard FTSE Europe ETF
- Europe Equities
The VGK ETF, which measures European Equities, continued to grow by 2.90% in July. The 1 year trailing return of this ETF is 14.55%. The trend in August is weakly bullish with a Trend Score unchanged of 2 out of 10. The level of risk of this ETF in August is medium with a Risk Score in expansion of 4 out of 10. This ETF is invested in the strategies Global Stable and Global Conservative in August.
BND Vanguard Total Bond Market ETF
- US Total Bond Market
The BND Exchange-Traded Fund from Vanguard, which follows a wide variety of US government and US corporate bonds, fell 0.37% in July. The performance over a period of 1 year of this ETF is -5.26%. The trend in August is lightly positive with a Trend Score constant of 1 out of 10. The level of risk of this ETF in August is low with a Risk Score in growth of 2 out of 10.
LQD iShares iBoxx $ Investment Grade Corporate Bond
- US Corporate Bonds
The LQD ETF, which mimics an index composed of U.S. corporate bonds, fell 0.27% last month. The performance over a period of 1 year of this ETF is -6.14%. The trend in this month is lightly bullish with a Trend Score stable of 1 out of 10. The degree of risk of this ETF in this month is low with a Risk Score in progression of 2 out of 10. This ETF is present in the strategy US Balanced in August.
TLT iShares 20+ Year Treasury Bond ETF
- Long-Term US Treasuries
The TLT Exchange-Traded Fund from iShares, which measures the long-term sector of the U.S. Treasury market, receded 2.81% last month. The evolution of the performance of this ETF over 1 year is -14.53%. The trend in this month is negative. The level of risk of this ETF in this month is low with a Risk Score unchanged of 2 out of 10.
IEF iShares 7-10 Year Treasury Bond ETF
- Intermediate-term US Treasuries
The IEF ETF, which mimics intermediate-term U.S. Treasury bonds, dropped 0.89% in July. The 1 year trailing return of this equity is -9.52%. The trend in August is bearish. The degree of risk of this equity in August is low with a Risk Score in progression of 2 out of 10. This equity is present in the portfolios Global Stable and Global Conservative in August.
Compliance disclaimer
This communication is for information and education purposes only and should not be taken as investment advice, a personal recommendation,
or an offer of, or solicitation to buy or sell, any financial instruments.
Natevia makes no representation and assumes no liability as to the accuracy or completeness of the content of this publication,
which has been prepared utilizing publicly-available information.
Past Performance is not indicative of future results.