SWM ETF portfolios well ahead in September

All our ETF portfolios performed better than benchmarks in September and all portfolios bar fixed-income continued to add to their gains year-to-date. Our equity portfolio was the star performer of the month, up 2.96%, outperforming its benchmark by more than 1%.

September saw a return to the ‘Trump trade’ as the US equity market (in particular small- and mid-caps) and the US dollar gained in strength. The relative weakness in the Euro and Japanese Yen boosted the respective equity markets while emerging market equities reacted adversely to the dollar strength. Equity gains more than offset the relative drag from commodities, where we have zero exposure.

Our exposure to US equities mainly via small- and mid-caps, and to European and Japanese equities through currency hedged ETFs drove the equity outperformance. The DAX (+6.3%), US small-caps (+6.1%) and our ESG play in PowerShares water resources ETF (+5.2%) were our best performing assets. We will continue to be positioned for a strengthening dollar in the coming months.

Our focus remains on delivering superior returns via a rising proportion of ESG (Environmental, Social and Governance) ETFs. We will continue to avoid fossil fuels and related investments across all our portfolios.

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for September 2017.