Asset Allocation & Rebalancing Helps Drive MarketRiders’ ETF Portfolio up Additional 1% to 24.21% in 2009

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January 11, 2010 12:05pm ETF BASIC NEWS

marketridersMarketRiders ( today demonstrated how investing for retirement can be simple and less risky by owning and rebalancing an all ETF portfolio. Over the 12 months ending December 31, 2009, disciplined rebalancing several times

 during the year resulted in adding over 1% to the “Growth Focused 30” portfolio’s performance. MarketRiders online portfolio manager emails rebalancing alerts whenever market conditions move the portfolio from its target allocations.

“Sophisticated investors focus on asset allocation, not stock picking and market timing, and periodically rebalance their portfolios, forcing a buy low and sell high discipline,” explains Mitch Tuchman, CEO, MarketRiders. “The ‘Growth Focused 30’ portfolio returned a total of 24.21% instead of only 23.15% because when an asset class drifted from its target, we rebalanced the portfolio — we were forced to buy low and sell high.”

Through global diversification, “Growth Focused 30” also matched the 2009 S&P performance but with much less risk. During one of the most volatile 12 months in financial market history, the portfolio was down about 20% on March 9, 2009, the worst day of the year, while the S&P 500 was down about 25%.

Through only 14 ETFs, “Growth Focused 30” includes thousands of bonds, US, foreign market, and commodity and real estate stocks with ETFs from Vanguard Funds, iShares and State Street Bank including: (BIL), (BND) and (TIP) (fixed income), (EWC), (VGK), (VPL) (foreign developed countries), (VWO) (emerging markets), (GLD), (IXC) (commodities), (RWR), (RWX) (real estate) and (IJR), (IJH) and (SPY) (small, mid and large cap US stocks).

Based upon how an individual answers a variety of questions, MarketRiders online portfolio manager recommends an optimal portfolio. With 30% allocated to fixed income and 70% to equity, the Growth Focused 30 portfolio is generally recommended for someone who is many years away from retirement and wants to grow her nest egg, but also wants a cushion for big market ups and downs by maintaining an exposure to bonds.

With ETFs, investors can save nearly 90% over mutual fund fees. ETF fees for $100,000 invested in “Growth Focused 30” are only $210 instead of about $1500 in fees for a comparable mutual fund portfolio.

“Our investors aren’t paying managers to beat the market — rather they simply capture the exact returns of multiple markets which is a strategy proven to generate greater returns with less risk,” said Steve Beck, co-founder.

MarketRiders, Inc. is pioneering a new do-it-yourself investing movement through its easy-to use online portfolio manager that leverages technology to allow anyone to invest using strategies previously only available to elite investors and large endowments. In 2 hours a year, anyone can now build and manage their own portfolio, lower their risk, and save on the onerous investment fees which typically siphon away 33% of a portfolio over 15 years. MarketRiders software watches the portfolio 24×7 and tells investors when it’s time to rebalance. For more information, visit

Erica Zeidenberg
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