ETF Portfolio Changes: Going Long Turkey, Brazil Small Caps and Korea

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 |  Includes: BRF, CYB, EUM, EWY, IOO, NLR, PID, TBF, TLH, TLT, TUR
by: Carl T. Delfeld

This morning, the ETF Passport portfolios were adjusted dropping the inverse emerging markets ETF (NYSEARCA:EUM) and going long Turkey (NYSEARCA:TUR), Brazil small cap (NYSEARCA:BRF) and South Korea (NYSEARCA:EWY). I also added the Chinese Yuan (NYSEARCA:CYB) in anticipation of some movement on this issue but even if I have to wait it is a beautiful asymmetrical position with minimum downside risk.

I also added the iShares S&P 100 ETF (NYSEARCA:IOO) which is a basket of the largest 100 companies in the world. It might surprise you that 12 of these companies are headquartered in emerging market countries. Although my Chartwell Global 30 has outperformed this index by a substantial margin since 2005, IOO remains one of my favorite ETFs and can be paired with the International Dividend Achievers ETF (NYSEARCA:PID) to nice effect.

Finally, I added small position to the nuclear power ETF (NYSEARCA:NLR) based on a nice sell off last week and the fact that the Obama Admin is spiking funding and guarantees. No surprise there since nuclear is the cleanest and greenest energy source and the backbone of China's and India's energy plan.

Interesting that the news of China's selloff of Treasury notes in January did not impact TLT, TBF or TLH. Will have to watch this closely. Foreign demand for US Treasury securities recorded a record drop in December as China purged some of its holdings of government debt, the US Treasury department said on Tuesday. According to the FT, China sold $34.2bn in US Treasury securities during the month, leaving Japan as the biggest holder of government debt with $768.8bn.