Madison Portfolio Update: 3 April 2013

Includes: VBR, VFH, VOE
by: Lowell Herr

Since the last update, shares of the financial sector (NYSEARCA:VFH) were added to the Madison. As you will recall, the “Delta Factor” last showed VFH as a Buy and the Ranking Worksheet showed the same. More on this below. First we begin this review with the Madison Dashboard. The Madison is one of three portfolios where all the transactions are not shown. The other two are the Maxwell and Euclid. Data is available for the other eight portfolios. The Madison is one of the five ITA Risk Reduction (ITARR) model portfolios.

Madison Dashboard: Of the two asset classes below target, commodities as represented by DBC is still in the sell zone. The price of DBC still lies below its 195-Day Exponential Moving Average (EMA) so we will continue to remain out of that asset class. I still hold a few shares in order that the ITA Index be calculated properly.

When it comes to Small-Cap Value, we use either IWN or VBR as our ETFs of choice. Both ETFs are priced well above their 195-Day EMAs so I need to bring that asset class back into balance. Otherwise, this portfolio will be placed in neglect mode for another 33 days.

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Madison Efficient Frontier: The Madison EF is enhanced by the addition of VFH, but further adjustments will improve the projected return of this portfolio. Only time will tell as we attempt to bring the performance of the Madison more in line with both the VTSMX and ITA Index benchmarks.

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Madison Rankings: Below is the current ranking system for the Madison. Note that value ETFs such as VOE and VBR are showing up quite well as top performers.

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