Around the World with ChartwellETF.com ETF Newsletter
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ETFfocus List
Each week receive ETF recommendations broken down into five areas. The Core category is for more buy and hold-oriented positions. A global sector section, international with country and regional ETFs, currencies and commodities and a hedge category for ETFs that move opposite markets.
Use the ETFfocus List as a menu from which to select ETFs that fit your personal financial situation and goals.
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SAMPLE - ETFfocus List |
Cash - 15%
Cash is in itself a hedge for your portfolio and I will give you a percentage guideline based on my view of whether markets are undervalued or overvalued. |
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Conservative Core 25%-30%
RYMFX - Rydex Managed Futures – moves inverse to many markets
JXI - iShares Global Utilities – defensive, nice yield, out of favor
IOO - iShares Global 100 – largest 100 companies in the world
CSM - ProShares Long/Short – solid core holding in uncertain markets |
ETFs in this section are a diverse group but collectively may help you preserve your capital due to diversification and non-correlation. They also offer some upside potential and, in general, are changed less frequently than other categories. |
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Global 15%
IOO - iShares S&P Global 100 – great core holding
GII - Global Infrastructure – stimulus packages ramp up spending
IOO - iShares S&P Global 100 – great core holding |
Global Sector ETFs are usually plays on sector investment themes such as infrastructure, energy or materials. They could also be targeted at asset classes such as small cap emerging markets. |
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International 20%
PID - PowerShares Dividend Achievers – income play
EWL - Switzerland - only up 15% this year, contrarian quality
EIS - Israel – higher profile, valuation, graduation to developed status |
Many of the picks in this category are country-specific ETFs such as Sweden (EWD), China (FXI), Switzerland (EWL), or Brazil (EWZ). Picks are primarily based on attractive relative valuations on price to earnings, cash flow and book value. |
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Currency - 15%
CEW - Emerging Market Currencies – yield & diversification
UUP - Powershares DB US Dollar Bull – potential for sharp rebound |
Many members may benefit from diversifying into other currencies such as the Australian dollar (FXA) or the Japanese yen (FXY). At other points, when the US dollar looks undervalued, I might go with (UUP). |
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Hedge 10-15%
TBF - ProShares Short Lehman 20+ Years (long term play on higher interest rates)
SH - inverse of S&P 500 as tech/finance pullback
Buy EUM as emerging markets lead pullback |
Markets don’t always go up so why not include some Inverse ETFs that move opposite markets? These serve as a portfolio “shock absorber” when markets are seeing red. |
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