ETF Index and ETF Sector Table

"I use this strategy for my ETF entry points and to set trailing stops. It gives me the discipline and structure I need to manage a diversified list of ETFs at one time"

Exchange Traded Funds "ETFs" are index and sector funds that trade like stocks. We combine our proven Mutual Fund Investing Trading and Market Timing strategy with ETF trading advantages to arrive at a longer term ETF investing and trading strategy.

Because ETFs and mutual funds are mirror images of each other, our strategy rules designed specifically for mutual funds also work with ETFs. See how the following well known ETFs correlate with mutual funds that track the same index. These same mutual funds with our strategy rules applied, when compared to buy hold, make excellent performance comparisons.

ETF Name	Symbol	Correlation	Mutual Fund in Strategy
Nasdaq 100 Index	QQQQ	97.9	Rydex OTC Fund
Smallcap Value Index	VBK	93.7	Rydex Smallcap Growth
Large Cap Value Index	VTV	91.6	Morningstar Value Index
EAFE International Stock	EFA	93.7	Fidelity Overseas
Technology Sector	XLK	96.7	Rydex Technology Fund

Special Note on using ETF's:

• Some ETFs have limited shares available for trading so prices on "market" buy or sell orders can fluctuate widely during the trading day.
• ETFs are traded continuously during the trading day.However, the Mutual Fund Investing Trading and Market Timing strategy is not a day trading strategy for ETFs. It is a longer term strategy that can be applied successfully to ETFs.
• Our strategy indicators and trading rules are based on price points taken at the close of the trading day. ETF prices posted in the table are ETF closing prices. We use ETF closing prices in our strategy. They are entered in our computations over night to determine trading signals for action to take on the next trading day. ETFs are treated in the strategy just like mutual funds.
• ETFs incur transaction costs every time they are traded, just like stocks. These charges are fixed rates, so do the math on the size of your position and the frequency of trading
• ETFs are relatively new. We are beginning to build a performance history of our strategy applied to selected ETFs as shown in Other Funds Performance. However, ETFs have high correlation values with comparable mutual funds that have excellent long term performance in our strategy.

ETF Index and ETF Sector Table

The ETF Index and Sector Table below is an example of the Table a subscriber sees every day. The "Status" and "Action to Take" columns are the two most important columns in the table. There, an investor sees the status of each individual ETF in the strategy and the action, if any, the strategy calls for today. The table also gives the latest readings on indicators, prices and position returns.

The table is grouped by investment categories as they are shown in 401k plans and asset allocation models. Selections for the categories have been taken from different ETF underwriters and were chosen for their liquidity and application in our strategy.

An explanation of how to read the table follows below the example table. The ETF table is updated daily and available for viewing by 9:30am EST.

Say you have an on-line brokerage account and have owned "Information Technology ETF" VGT, since the last strategy entry signal. Today, by checking the table, you would see: the long term indicator is Negative coded red, the Intermediate Term Indicator and Short Term Indicators are positive coded green; the price when entered on the buy signal was 42.16; the current price is 44.45; the stop is set at 43.12; the strategy is "in"; the fund is a buyhold ; the performance of this position as of today is +5.43%; and you have been in the trade 16 days. More detail on reading the table follows below.

• For Buy-Sell signals on individual ETFs. The daily ETF Index and ETF Sector Fund Table can be consulted to make timing trades in and out of ETFs.
• The ETF and Sector Funds tables are the source of trading information for making allocation decisions in diversified ETF models. See Tactical Asset Allocation Models Example. Models provide order by assigning and allocating fund choices to different investment risk temperaments.
• As the data basis for the entries and exits in an ETF Model we manage that subscribers see updated and posted daily. This is an easy to read disciplined way to manage a number of ETFs at one time. See it at ETF Model Example.

To get started now using this strategy for your ETF investing, assuming you have an on-line or regular brokerage account, simply:

• Subscribe to the Mutual Fund Investing, Trading and Market Timing strategy on this website
• Consult the ETF Index and Sector Table
• Consult our on-line ETF Model