The Riskalyze Report: Advisors Get Concentrated

At the request of so many investment advisors, my friends at Riskalyze share the big trends in the assets going into and coming out of advisor portfolios every week. The underlying data is aggregated from hundreds of thousands of client accounts across the $120 billion and counting that advisors manage on the Riskalyze platform*. I hope we can uncover interesting trends for you each week…


October 11th- October 17th

Winners (advisor flows TO these investments increased substantially):
  1. First Trust Dorsey Wright Focus 5 (FV)
  2. MFS Value Fund (MEIAX)
  3. Walmart (WMT)

Losers (advisor flows FROM these investments increased substantially):

  1. PowerShares QQQ Trust  (QQQ)
  2. FaceBook (FB
  3. S & P 500 Index (RSP)

Josh here – According to Mike McDaniel, CIO at Riskalyze, “advisors decreased their use of QQQ by approximately 15% and advisor use of FV has doubled over the last quarter.”

FV is now one of the largest actively managed ETFs and it benefitted from some press last week. Advisors who used to subscribe to the Dorsey Wright newsletter product and implement the rotation strategy themselves are now simply letting the ETF do the work for them. FV owns the top five sectors based on DW’s momentum screen and its probably being used as a satellite strategy by advisory firms, alongside a more traditional asset allocation model.

*(to state the obvious, Riskalyze does not share client sensitive data with me or use animals in testing).

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