Evaluating Simple Strategies with Mutual Funds and ETFs to Outperform the China’s Shanghai Composite Index (SCI)

This paper examines several portfolio rules for comparing performance against the Shanghai Composite Index. The investor can use mutual funds or sector-based Exchange-Traded funds (ETFs). Five different approaches are applied for analysis. Two core approaches are discussed in detail and compared to passive investing: The top-N strategy and the sector rotation strategy. The Top-N strategy shifts capital each period into the last period rank-N fund, and the sector rotation strategy ranks funds bas