PT  - JOURNAL ARTICLE
AU  - David M. Smith
AU  - Vladimir S. Pantilei
TI  - Do “Dogs of the World” Bark or Bite? <em>Evidence from Single-Country ETFs</em>
AID  - 10.3905/joi.2015.24.1.007
DP  - 2015 Feb 28
TA  - The Journal of Investing
PG  - 7--15
VI  - 24
IP  - 1
4099  - https://pm-research.com/content/24/1/7.short
4100  - https://pm-research.com/content/24/1/7.full
AB  - Return reversals in financial markets are commonly accepted as a powerful force. This article examines the performance of a simple strategy—“Dogs of the World”—designed to take advantage of return reversals in national equity markets. Both a simulated application of the strategy using indexes since 1971 and an application using single-country ETFs since 1997 produce higher compounded average returns than those of a comparable market index. Although the Dogs strategy also produces higher volatility than the index, the information ratio for the strategy suggests that the return more than compensates. Implementation of this strategy using single-country ETFs offers the advantages of being straightforward and inexpensive.TOPICS: Exchange-traded funds and applications, developed