Do you aspire to achieve market returns?
Quantitative investing with algorithms can help individual investors
beat the market.
Alpha seeks passive index ETFs that are appreciating faster than the SPY and attempts to own them while they are appreciating.
Alpha uses computers that collect and analyze data to detect hidden trends or patterns. Alpha only recommends ETFs that meet strictly imposed selection criteria:
- Historical – Have existed through both up and down markets
- Scale – Have more than $1 billion Assets Under Management (AUM)
- Liquidity – Trade more than 300,000 shares per day
- Focused – Be concentrated in a sector or geographic region
- Passive – Tracks a declared index that does not change objectives over time
- Diversification – Avoid similar or overlapping sectors (i.e. Alpha will not select similar or overlapping sector ETFs offered by competing issuers)
Alpha Historical Returns
The chart below shows how Alpha has performed each calendar year since inception in 2016.
Performance quoted represents past performance and does not guarantee future results.
Alpha Annual Total Returns
(for periods ending December 31, 2018)
Performance quoted represents past performance and does not guarantee future results.
Weekly Guidance
Alpha provides investors with algorithm-based selection of WHICH ETFs to own and buy/sell guidance for WHEN to own them. Investors following Alpha are re-balanced and re-allocated dynamically.
Alpha Finds the Most Rapidly Appreciating Economies
At any given time, the world’s economies are expanding or contracting at different rates. Alpha is designed to seek the most rapidly appreciating ETFs.
A relative performance chart shows how ETFs representing economies from diverse geographic regions compared to the U.S economy in March through June of 2007.
- South America/Brazil (EWZ) +38%
- Emerging Markets (EEM) +22.4%
- European Union (EZU) +15.7%
- U.S. SPDR S&P 500 (SPY) +7.7%
Alpha Finds the Most Rapidly Appreciating Sectors
Sectors within an economy often expand or contract simultaneously at different rates.
A relative performance chart shows how ETFs representing sectors within an economy can increase and decrease simultaneously and that owning the “market” can result in an average near zero! Sectors of the U.S economy in March through July of 2007:
- Energy (IYE) +21.7%
- Aerospace and Defense (ITA) +16.4%
- Financial sector (IYF) -8.5%
- Real Estate sector (IYR) -18.9%
- U.S. SPDR S&P 500 (SPY) +3.4%
There is Always a Bull Market
When worldwide stock indexes were plummeting, Alpha found ETFs appreciating
Capital preservation and avoiding losses is key to the success of Alpha. A chart showing the relative performance of ETFs representing geographic regions around the world and U.S. bond ETFs during the financial crises. July through December of 2008:
- 20+ year Treasury bonds (TLT) +26%
- U.S. Aggregate bonds (AGG) +3.1%
- U.S. SPDR S&P 500 (SPY) ‑29%
- European Union (EZU) ‑36.5%
- Emerging Markets (EEM) ‑42%
- South America/Brazil (EWZ) ‑58.9%
Continuous Evaluation
An ETF’s performance is assessed each week on both a relative and absolute basis.
During the first half of 2009, the situation completely reversed. A chart showing the relative performance of ETFs representing geographic regions around the world and a U.S. bond ETFs following the financial crises. January through June of 2009:
- 20+ year Treasury bonds (TLT) ‑19%
- U.S. SPDR S&P 500 (SPY) ‑1%
- Emerging Markets (EEM) +25.5%
- South America/Brazil (EWZ) +46%
Correlating of an ETF With the Market
Is largely dependent on the holding period.
Correlation is a statistical measure that describes how an ETF performs relative to the market. The correlation coefficient, typically normalized, from +1 (identical to the market) to -1 (opposite to the market) with 0 meaning an ETFs performance has no relation whatsoever to the market’s direction.
Understanding Correlation
Alpha can generate desired correlation by selecting the most rapidly appreciating ETFs and only recommending them while they are appreciating.
When the market is advancing, investors want to be correlated to the market
When the market is declining, investors want to be negatively correlated to the market
When the market is not trending, investors want to be un-correlated to the market
Knowing WHICH ETF to Buy and WHEN to Buy/Sell, is Critical to Maximizing Investment Gains.
Quantitative data, statistical analysis, and Algorithm based selection with buy/sell decisions keep investor’s ETF holding optimized for all market conditions.
Alpha is designed to hold only ETFs that are increasing in value. Therefore, when the market is advancing, Alpha will also be increasing in value.
When the market declines, Alpha will find ETFs that are advancing or advise holding cash.
When the market is directionless, Alpha will find ETFs that are advancing or advise holding cash.
Choose an Alpha Plan