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I am an independent investor writing at Scott's Investments (http://www.scottsinvestments.com). My site is dedicated to discussing and publicly tracking historically successful investments strategies and sharing free investment resources. I emphasize empirical, historical, and quantitative... More
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Scott's Investments
  • Commission Free ETF Portfolios for June 0 comments
    Jun 3, 2011 10:45 AM | about stocks: BND, DBC, DJP, EEM, EFA, IWB, IWM, IYR, RWX, TIP, VB, VEU, VNQ, VTI, VWO
    As a reminder to existing readers and an introduction to those new to the site, I track commission free ETF tactical asset allocation portfolios on the right hand side of  Scott's Investments.. There are three portfolios which track some commission free ETF portfolios on TD Ameritrade (detailed by me here), Fidelity, and Vanguard.  


    There are some important points regarding the portfolios: 


    1) Not all of the ETFs in each portfolio are commission free.  ETFs which are charged a commission are noted with an asterisks. In addition, there may be requirements in order to qualify for free trades with each broker, so please make sure to do your own research and due diligence before trading with any of the brokers.  


    2) The 10 month moving average updates daily.  It averages thedividend/split adjusted closing price of the most recent 10 months of data.  The current month's most recent close is included as one of the 10 months when calculating the average. 


    3)  Even though the signals update daily, it is intended as a long-term, low turnover strategy that ignores the "noise" of some of the daily crossovers throughout the month above and below the 10 month moving average.  It is up to the user on how to use the data; however, one potential use of the signals is to simply check them once monthly on a preset day of the month and then make a decision.
    The strategy is to buy/hold each ETF when it closes the month above its 10 month simple moving average. If the ETF closes the month below its 10 month simple moving average, then sell the position and hold the proceeds in cash. When the ETF closes the month above its 10 month simple moving average, re-purchase the ETF.  The strategy is inspired by Mebane Faber's The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets
    As of June 2nd, all of the ETFs in each portfolio are above their moving average. In other words, each portfolio is fully invested in 10 ETFs (no cash). Below are the three different portfolios:



    TD AMERITRADE Position (determined by current 10 month SMA)
    DJP iPath DJ-UBS Commodity Index TR ETN Invested
    DBC PowerShares DB Commodity Index Tracking Invested
    RWX SPDR DJ International Real Estate ETF Invested
    VNQ Vanguard REIT Index ETF Invested
    TIP iShares Barclays TIPS Bond Invested
    BND Vanguard Total Bond Market ETF Invested
    VWO Vanguard Emerging Markets Stock ETF Invested
    VEU Vanguard FTSE All-World ex-US ETF Invested
    VB Vanguard Small Cap ETF Invested
    VTI Vanguard Total Stock Market ETF Invested

     




    FIDELITY Position (determined by current 10 month SMA)
    DBA* PowerShares DB Agricultural Commodities Invested
    DBC* PowerShares DB Commodity Index Tracking Invested



    VNQI* ** Global ex-U.S. Real Estate Invested
    IYR Dow Jones US Real Estate Invested
    TIP iShares Barclays TIPS Bond Invested
    AGG Barclays Aggregate Bond Invested
    EEM MSCI Emerging Markets Invested
    EFA MSCI EAFE Invested
    IWM Russell 2000 Invested
    IWB Russell 1000 Invested

    *commissions may apply

    **10 month of data not available so longest availble moving average used
      VANGUARD Position (determined by current 10 month SMA)
    DBA* PowerShares DB Agricultural Commodities Invested
    DBC* PowerShares DB Commodity Index Tracking Invested
    VNQI** Global ex-U.S. Real Estate Invested
    VNQ Vanguard REIT Index ETF Invested
    TIP* iShares Barclays TIPS Bond Invested
    BND Vanguard Total Bond Market ETF Invested
    VWO Vanguard Emerging Markets Stock ETF Invested
    VEU Vanguard FTSE All-World ex-US ETF Invested
    VB Vanguard Small Cap ETF Invested
    VTI Vanguard Total Stock Market ETF Invested

    *commissions may apply

    **10 month of data not available so longest availble moving average used

     
    Stocks: BND, DBC, DJP, EEM, EFA, IWB, IWM, IYR, RWX, TIP, VB, VEU, VNQ, VTI, VWO
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