There were no changes to the suite of DWS models this week, so we’ll look at the Xtrackers Developed ex-US Dynamic FX Hedged Model (TR). This model looks at a universe of developed market currency-hedged Xtrackers ETFs and picks out the top three based on relative strength. As we touched on at length in our piece on the developed market momentum environment (click here for more), stability of leadership has been a tailwind for momentum strategies focused on developed markets. This is evident as the model has not made a trade in over five years yet has outperformed its benchmark by over 6% on a five-year annualized basis. At the same time, the currency hedged approach helps to reduce portfolio volatility as the model’s five-year standard deviation is 12.60 versus its benchmark’s, the iShares MSCI EAFE ETF (EFA), standard deviation of 16.23. While the model has slightly underperformed this year due to the weakness of the US Dollar, it has shown consistency over the years in what has been a great environment for developed market momentum strategies.

The table below is a review of important technical data on a select group of DWS Xtrackers ETFs. Significant changes within the past week are highlighted in Green if positive or Red if negative. This portfolio is designed to be used as a "radar" screen to bring your attention to potentially important technical changes that may require your attention and potential action. When evaluating the Fund Score, the strongest issues have scores of 4 or higher while those ETFs with scores below a 3 are no longer considered solid citizens.

The ETFs with the most relative strength buy signals (suggesting outperformance) versus the others in the group are listed at the top. These ETFs should be overweighted in the portfolio. Those ETFs with the least amount of relative strength buy signals versus the others in the group are listed at the bottom. These ETFs should be underweighted in the portfolio.

* - Dates prior to 9/6/2016, which is when the Xtrackers Global Model Portfolio became available in the DWS Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 9/6/2016, which is when the Xtrackers All World Ex US Model Portfolio became available in the DWS Weekly ETF Report, are representative of when the position was added to the backtested model.

* - Dates prior to 9/6/2016, which is when the Xtrackers Developed Intl Equity Model Portfolio became available in the DWS Weekly ETF Report, are representative of when the position was added to the backtested model.