ETF Investment Strategies to Help Power Long Term Investing Success
“Green Zone” ETF Investment Strategy
This is our core ETF investing strategy and is fundamental to finding the latest top trending ETF investments. All 154 ETF asset categories are ranked weekly by trend strength and also color coded for ease of use. The Green Zone investment strategy simply stays invested in the top 2 quintiles of ETFs that are outperforming the stock market index. Here is how it works:
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Apply performance quintiles – each week we take the performance rankings and divide the list into 5 equal performance “chunks” called quintiles
Color coded rankings – each quintile is assigned a color to represent their trend strength ranging from Dark Green down to Dark Red
“Green Zones” – the top 2 performing quintiles are shaded two tones of green and represent ETF trends that are outperforming the stock market trend
Invest in the Green Zone – the strategy is simply to stay invested in the Green Zones
Re-balance as needed – if any holdings drop out of the Green Zone simply re-balance by replacing with a new ETF from the Green Zone
Allocation Leadership Strategy
This strategy assumes you already have your asset allocation targets determined for major asset classes (i.e. 35% Domestic Equity / 25% Foreign Equity / 40% Bonds). Here is how it works:
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Use Low Cost ETFs – almost all of the 154 ETFs we track are a combination of the lowest cost with highest trading volume for most ETF segments where possible
Invest in the Green Zone – within each of your asset classes pick ETF leaders that are in the Green Zone.
Diversify – choose Green Zone candidates with different “Alike” scores to reduce investment correlation risk.
Protect the downside – special volatility-based stop loss calculations are calculated weekly for investors that want to consider downside protection.
Re-balance as needed – if any holdings drop out of the Green Zone simply re-balance by replacing with a new ETF from the Green Zone
Sector Rotation Strategy
This strategy is focused on staying invested in trending sectors that are benefiting the most from the current stage of the economic business cycle. The Sector Asset Class table ranks the classic industry sectors in descending order of trend strength each week. Simply stay invested in sectors that are in the Green Zone. Why we like this sector approach:
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Sector Leadership – the Green Zone sectors are outperforming other business sectors during the current business cycle.
Sector Diversification – the Sector ETFs own a very broad grouping of company stocks.
Sector Rotation – new leaders will emerge in the business cycle and this is an easy way to identify them.
Leveraging the Business Cycle – different stages of the economic cycle benefit certain types of sectors.
Sector Upgrading – as the cycle shifts the trend tables push new leaders to the top of the list.
Asset Class Upgrading Strategies
Building a high performing ETF portfolio has never been easier. The color-coded Asset Class trend table groups the 154 ETF universe into popular asset categories so you can easily mix and match top-performing ETFs from the Asset Categories you need for your portfolio:
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Global Regions – 13 global economic regions for International equity exposure.
Country Indexes – 28 of the largest GDP Country investment indexes.
Investment Styles – 13 of the classic size and investment style indexes for US equity markets.
Sectors – the 10 classic sectors of the US economy.
Industries – 39 specific US Industries for more targeted trend investments.
Fixed Income – 14 Bond ETF funds to cover a broad range of fixed-income durations and credit levels.
Commodities – 12 Commodity investments spanning Agriculture, Energy and Metals.
Currencies – 13 of the largest global currencies.
Alternate Investments – 12 classic alternates ranging from Real Estate, Private Equity, VIX and Inverse Funds .
Portfolio Upgrading Strategies
Follow some of the classic investment portfolios with an upgrading process to constantly invest in the “Green Zone” of ETFs that are outperforming the trend of the broad market index. Our popular upgrading portfolios:
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Stocks or Bonds Portfolio – the major market signal you need to keep a pulse on the #1 broad market trend.
Global Regions Portfolio – major equity indexes across the globe with lower levels of correlation risk.
Bond Portfolio – apply the “Green Zone” investment strategy across a range of Bond investment options.
Tactical Asset Allocation Portfolio – a mix of asset sectors that have strong historical performance through different parts of the market cycle.
Low-Cost Indexing Portfolio – get market exposure without the negative effect of higher fees and save a bundle in the long-term.
Strategic Asset Allocation Portfolio – targeting the classic Asset Categories of investment theory with ETFs.
Customized Portfolio – mix and match across the portfolios and Asset Class trend rankings to find a combination that is right for your investment needs.
Long Term Focus – 97% of our subscribers focus on the long-term. Check in every month or two and make occasional portfolio changes to swap in a new trend leader is all that is needed for long-term success over a complete market cycle.
The Information You Need to Create Winning Long Term Portfolios
We believe everyone can succeed at investing with the right strategy and become their own ETF Investment Advisor. Our goal is to provide you with trend data and a simple framework to empower long term investing success. In addition to everything above you also get:
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Weekly Updating – investing with Exchange Traded Funds (ETFs) buys an entire basket of company stocks
Sortable tables – we have selected ETFs with some of the lowest expense ratios in the industry
15+ powerful strategies – a full range of popular and unique investment strategies to utilize in conjunction with the weekly trend data ranking tables
6 Custom ETF Portfolios – a range of asset class investment options grouped into portfolios with weekly ranking updates
Peace of Mind – we’ve implied the process of long term investing to give you peace of mind about your financial future
