The Italian Long

Italy Index MSCI Ishares (EWI) is the new running ORMI Global Active ETF selection.

The Global Active ETF

This is our second ETF model after Global ETF Sector. The reason we created this second model was because we wanted to make a new ORMI model, which encompassed Regional Indices, top US blue chip indices and had a blend character. Liquidity is a big constraint for ETFs. We have selected the top liquid ETFs from the respective space.

It is hard to benchmark such a model with any regional indices. First; the universe is much larger than US indices and S&P 500. Second; because ORMI is active allocation and S&P is a passive construction. But considering 90% of active models don’t beat the S&P 500 consistently and US Equity was the top performing global market in the last few years, it was interesting for us to see that our ETF selection mechanism model matched the S&P 500 performance and even bettered it compared to the underlying risk. The volatility for the ORMI model was 7% lower than the S&P 500. The ORMI delivered 12.3% annualized.

We have added a new correlation matrix to the current update to illustrate how low correlated the ORMI selections are compared to the universe or benchmark. Low correlation suggests that ORMI could also perform in a lackluster market and not fall if the Universe witnesses a drawdown. We have also simplified our entry and exit conditions. The ORMI model is designed to protect all positions for a loss bigger than 5%.

Enjoy the latest ORMI ®

For knowing more about ORMI Indices mail us for details or contact a sales representative.

Presentations and Primers: ORMI Indices and Analytics


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