Introducing Risk Appetite Spread

What is Risk Appetite Spread? Denote R(x) to be the fundamental rank of an ETF. Risk Appetite Spread is

((R(IWF) + R(IWO)) /2 + R(SLY)) / 2 - ((R(IWD) + R(IWN)) /2 + R(ELR)) / 2

Where (R(IWF) + R(IWO)) /2 represent the fundamental rank of growth stocks, R(SLY) represent that of small caps. The average of these two represent the fundamental rank of risky assets. (R(IWD) + R(IWN)) /2 represent the fundamental rank of value stocks, R(ELR) represent that of large caps. The average of these two represent the fundamental rank of safe assets. In theory a high RSA indicates that risk appetite is on and will add fuel to a bull market.

Read more on ETF Ranking and Fundamental Ranking.

Where is RAS? It is located to the lower right corner on my blog. Similar to Sector Rank Spread, RAS is calculated and updated every weekend.