ETF Tactical Asset Allocation Example Page
The Exchange Traded Funds ("ETFs") Model is posted and updated daily for Subscribers. The ETFs you see in the table below have been selected by investment category to provide structure and diversification. In some categories more than one ETF is shown. The current buy, hold, sell status of the ETFs are color coded as they are in the daily fund tables. All of these ETFs appear in the separate ETF Table. You can see an example of this table using the left navigation bar.
When a trade is triggered by strategy rules, the transaction to be made is entered in the "Trades Today" section of the table and is posted before the market opens. There are no direct exchanges from one ETF to another, each "exit" and "entry" is a separate transaction. When the strategy triggers an exit in an ETF, the exit proceeds goes return to cash. The cash to purchase another ETF is drawn from cash when the strategy triggers an entry signal.
Please Note: Strategy rules are designed for mutual funds and signals are triggered from price points posted at the close of each trading day. We apply these same rules to ETFs using end of trading day prices for the ETF. Prices shown in tables are ETF closing prices. Subscribers following strategy rules make their own decisions on when to trade during the "trading day". We use closing prices and suggest "market on close" trades to follow the strategy price rules. You can pre-set "stop loss" or "trailing stops" for automatic execution using ETFs. This is an advantage over regular open end mutual funds
The selections we currently own are shown in the "ETF Positions" section of the table. There are 9 categories in the table. We hold 10% of the value of the Model in cash as a 10th category. This reserve fascillitates buying and selling ETF's on the same day. We limit new allocations to 10% in each Category. If there is no suitable entry in a category, the allocation is returned to cash, so cash can always hold a higher allocation than 10% depending on current market conditions.
Subscribers following the ETF signals can pick one or more, or all, of these ETFs in their accounts. Because of transaction costs, it would be well to hold at least $10,000 in each position to keep percentage transaction costs down. If a position is short it will highlighted as such.