ETF Portfolio Description

An ETF (Exchange-Traded Fund) is simply a collection of stocks, commodities, bonds or other type of securities that trade on the stock market just like a regular stock does. New investors may want to familiarize themselves by reading more about ETFs on Investopedia. My model portfolio typically holds 5-10 funds, drawn from a diverse basket of ETFs representing domestic, foreign, developed and emerging markets, as well as sector and commodity specific groups.

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These ETFs are basically lower fee versions of the mutual funds that you see in the mainstream financial services industry but because they trade directly on the stock market, they offer the flexibility needed to actively manage a portfolio. This allows me to use my trend trading methodology to sidestep market downturns and maintain strong growth. Occasionally, inverse (short) positions may be held for the purpose of risk management or to capture positive returns during bear markets.  The ETF portfolio makes around a dozen trades per year, depending on market conditions.

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Below is a snapshot of some closed trades from the ETF portfolio during 2018, which gives you an idea of what the portfolio may look like at any given time. This is prior to the market downturn that occurred in Q4, so things obviously look very different today. The portfolio is shown in the context of my tracking spreadsheet, which allows me to keep track of returns and manage risk in real-time. Winning trades, losing trades, and current portfolio are all tracked in the subscriber’s section.