Your ETF Portfolio Selection

Active ETF portfolio management strategies use ETF rankings to help guide rebalancing decisions.

 

Stocks or Bonds ETF Allocation Portfolio

One of the simplest and most powerful asset class indicators you can use to help determine risk tolerance and strategic asset allocation between these 2 major asset categories:

  • Major Market Signal– this #1 signal always helps you stay on the right side of the broad market trend to ride bull markets and preserve wealth during market crashes
  • Avoid Bear Markets – keeping an eye on trend rankings between equities and bonds can give you an early signal before major stock market crashes
  • Good for busy people – keeping the pulse on this one portfolio signal is all it takes to harvest the advantage of winning asset class selection
  • Asset allocation signal – a great proxy to use for signaling when it’s time to shift your asset allocation within employer investment plans
  • Life Cycle Portfolio – simple to use these two ETFs to create your own life cycle retirement allocation fund based on your age

 

Global ETF Investment Strategy Portfolio

Investing in global equity regions can offer diversification due to the low cross-correlations between different global economic zones.  Using a Global ETF rotation strategy can help you stay invested in global markets offering the best investment returns.  

What makes this ETF portfolio interesting:

  • Low correlation – the large spread in Alike correlation scores across global regions offers an improved risk/reward balance
  • Diversification– investing in global markets offers geographic, political and currency diversification
  • Global leaders – investing outside of North America gives access to some of the world’s best and strongest companies.
  • “Crash proof” – portfolio gives advance notice of bear markets and signals when to move into short and long bonds.
  • Long-term trades – a great portfolio for investors that review the market quarterly.

 

Bond ETF Portfolio Management Strategy

Almost every investor has a need for some level of bond exposure in their portfolio.  This bond strategy can help you identify the best performing bond segments of the market.  Other advantages to this bond strategy include:

  • Lower volatility – improve your risk-adjusted return over equities and add active bonds to your mix
  • Supercharge your bond allocation – use these signals to actively manage the bond portion of your investment portfolio
  • Liquidity– Bond ETFs offer excellent liquidity and transparent pricing over buying bonds directly
  • Low cost – these Bond ETFs offer a huge cost advantage over higher cost Bond Mutual Funds that erode returns overtime
  • Defensive – in times of uncertainty this portfolio can highlight some of the best bond opportunities for that moment in time.

 

Tactical ETF Asset Allocation Portfolio

Take advantage of asset sectors that have historically strong pricing movements over different parts of the market cycle.  A mix of sectors with a range of correlation factors that can help build a portfolio of leaders.   Why we like this portfolio:

  • Up and down action – during market down cycles this portfolio rotates bond and inverse ETFs into leadership positions
  • More volatility – an aggressive portfolio with higher volatility risk, but also higher return potential
  • Broad mix – portfolio candidates cover key sectors, geographic regions and super asset categories to benefit from broad investment themes
  • Opportunistic – helps reveal and take advantage of secular long-term trends in key market asset categories and territories
  • Simple – easy to follow, check in periodically and stay invested in the “Green” zones

 

Low-Cost ETF Indexing Portfolio

For investors that want to take a long-term view and avoid the punishing compounding effect of high fees on their financial future this portfolio holds some of the lowest-fee ETFs available.

What we also like about it:

  • Indexing strategy friendly – a great portfolio to watch for a basic indexing approach to the market
  • 401k and IRA allocation tool  – can help indicate when its a good time to shift the investment mix of employer plans
  • Infrequent monitoring – good tool for people on a quarterly or semi-annual investment mix review schedule
  • Market “compass”– a great portfolio to easily see broad market and asset class trend leaders
  • Preserve wealth – over the course of an investing lifetime swapping into low-cost ETFs will be your best trade ever!

 

Strategic ETF Asset Allocation Portfolio

This ETF portfolio rotation strategy targets the classic 16 Asset Categories as the basis for it’s investment universe, and helps you identify at any point in market cycle which classic asset categories are performing best.

Why we like it:

  • Classic Investment Strategy – this portfolio mimics most of the major asset classes with closely correlated ETFs where possible
  • Non-correlated – very low correlation (Alike scores) between portfolio participants helps isolate core asset category trends
  • Comprehensive – a broad asset class portfolio that is good for coverage through an entire market cycle
  • Asset class focus – portfolio returns are driven predominantly by asset class selection, not individual stock or sector picks
  • Access – these ETFs can help you invest in asset classes that were traditionally more difficult to access

 

BEST OF ALL – You Have The Tools and Data to Create Your Own Custom Portfolio!

We believe everyone can create winning long term investment portfolios.  Use the asset categories and simple color-coded trend quintiles to construct and maintain a portfolio of asset class leaders.   Consult your advisor with confidence or create your own portfolio.

What you also get:

  • “Green Zone” Strategy – it’s simple yet powerful – stay invested in trending asset classes (the green zones) that are outperforming the broad market index
  • Upgrading Strategy – re-balance periodically to keep your portfolio in the “Green Zone”,  swap out other trend colors for green – its that easy!
  • Diversification – use the Alike Score to select non-correlated green zone holdings as much as possible
  • Set protective stop losses – manage risk before you make the trade
  • Lock in profits – protect your profits on winning trades by moving up stop losses over time
 

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