A Basic ETF Portfolio For August (BND, DBC, VEU, VNQ, VTI)
Many of the strategies listed here were inspired in part by Mebane Faber, author of The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets. For an even better explanation of some of the strategies, I recommend the book. Also, he has a new project which allows users to replicate the best performing hedge funds, AlphaClone.
The data source for the information below is Finviz, which has some of the best free financial data on the web (as well as a new elite service) and Google Finance.
In addition, I have also added an exciting new ranking feature. Using ETF Replay, I am ranking the ETFs in various portfolios based on their 3-factor statistical model that combines relative strength and volatility. The current ranking of the 5 ETFs are below. I ranked the ETFs over different time periods – the first column is the rank of each ETF based on a combination of 6 month and 3 month return and 3 month volatility. The rankings are identical for both different tests I ran this month. For previous discussions on this system please read the articles here andhere. An investor could use the ETF Replay ranking system similar to the momentum and moving average system detailed above.
|Ticker||Company||Free Analysis||3 Mo.||6 Mo.||Year||3-6-12 Sum||200-Day SMA|
|(BND)||Vanguard Total Bond Market ETF||Here||3.48%||4.69%||8.42%||16.59%||3.88%|
|(DBC)||PowerShares DB Commodity Index Tracking||Here||-6.34%||0.88%||1.33%||-4.13%||-2.20%|
|(VEU)||Vanguard FTSE All-World ex-US ETF||Here||-2.63%||3.43%||10.53%||11.33%||0.12%|
|(VNQ)||Vanguard REIT Index ETF||Here||-1.66%||22.59%||54.16%||75.09%||11.73%|
|(VTI)||Vanguard Total Stock Market ETF||Here||-7.18%||4.40%||15.27%||12.49%||-0.04%|
|ETF Replay Ranking|
|(6 mo return/3 mo return/3 mo volatility)||3 month return/20 day return/20 day volatility|