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The Diversification Weighted Equity Global Quant Core is an all ETF equity model created to provide superior long term global performance. Model construction is heavily systematic and quantitative.

Gravity uses a proprietary quantitative scoring system that evaluations each country on the basis of several factors. Based on the studied relationships between each factor and expected returns Gravity reduces, normalizes and converts the factor data to provide an idiosyncratic expected return value that is designed measure an expected return differential juxtapose a world equity benchmark.

We take the best scoring ETF’s and combine their scores with the assets True Diversification® to create the weights.

GlobalQuant

Net Exports Countries who export more than they import bring money into the country some of which flows to the stock market
   
Gov Debt Governments with large cumulative debts are not able to continue to finance the debt and are at risk to their reputation and currency value around the world
   
Gov Size Governments tend to be a less efficient allocator of resources than the private sector. Countries where the government is a smaller % of GDP are thus more likely to have greater productivity and economic adaptability
   
Unemployment High unemployment in any country is a sign of weakness that tempers growth prospects
   
Inflation Rate Some inflation is good, but too much inflation introduces financial chaos and uncertainty; poor conditions for reliable widespread stock performance
   
Purchasing Power Parity GDP Change %
Especially, when combined with the Education factor, purchasing Power Parity (PPP) gives poorer countries a genuine advantage as this century’s advancements in transportation, communication and access to information enable accelerated catch up and growth
A faster growing economy should have faster growing stocks
   
Education System Knowledge work is globally portable; more than most industries, this allows citizens to capture higher paying jobs and develop and investing middle class
   
Economic Freedom Freedom from corruption, over-regulation, over taxation and injustice set the conditions in which capitalism can thrive
   
Interest Rates High interest rates act as competition to returns on stocks and are thus negative to stock performance
   
Credit Expansion When credit expands a multiplier effect helps to expand the economy
   
Labor Force Participation A larger % of the population participating in the workforce helps productivity and growth
   
Valuation Buy Low. Sell high. When you are buying low you are getting value.