In July 2009
I profiled a momentum based ETF portfolio. I track this portfolio (and others) monthly on Scott’s Investments
using Google Docs. The portfolio consists of the ETFs with the best
momentum among 5 ETFs: Vanguard Total Bond Market ETF (NYSE:BND), Powershares Commodity Index (NYSE:DBC), Vanguard FTSE All-World ex-US ETF (NYSE:VEU), Vanguard REIT Index ETF (NYSE:VNQ), Vanguard Total Stock Market ETF (NYSE:VTI).
The Basic Portfolio strategy is tracked as a hypothetical portfolio on Scott’s Investments
with a $10,000 starting balance. Year to date the portfolio is up 11.48% including dividends. The strategy for the portfolio is simple: purchase the top 3 ETFs with the highest 3, 6, and 12 month returns. Only purchase the top 3 ETFs if they are also above their 200 day simple moving average at month end.
Despite only being 5 ETFs, one could take multiple approaches to the portfolio, from buying and holding to actively managing it; or an investor could use a combination of different approaches
or trading strategies
Listed below are the month end results for April of the 5 ETFs listed above. This month the holdings are VNQ, VTI and DBC (3-6-12 strategy). This combination of ETFs is the same as last months list
and has not changed for 2011. Therefore, there has been no turnover in the portfolio year to date. BND’s momentum also continues to significantly lag the other four ETFs.
The data source for the information below is Finviz, and Google Finance.
||200 Day SMA
||Vanguard Total Bond Market ETF
||PowerShares DB Commodity Index Tracking
||Vanguard FTSE All-World ex-US ETF
||Vanguard REIT Index ETF
||Vanguard Total Stock Market ETF
Written By Scott’s Investments Disclosure: No positions
Scott’s Investments focuses on several different ETF portfolio strategies ranging from Basic, Individual, Country, US Sector, and Global Sector ETF portfolios.