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ETF Dumpster Dive Update


SeriousCat buys small amounts of various ETFs. Is this a better long-term investment approach than buying the random crap SeriousCat usually buys like New Zealand airports and jam stocks?

Haven't updated this in a while due to 1) the last time I wrote an update blog post, it never actually posted and I lost all my work, 2) the market as a whole has been rallying, so there hasn't been any buying opportunities in the ETF sphere.

For anyone reading, the purpose of this experiment was to buy out-of-favor equity ETFs near their 52 week lows. It's similar to what I've been doing with my individual stock choices, but with a larger safety net due to the diversified nature of ETFs. If an ETF is a good idea because of diversification, than a diversified collection of ETFs is even more good, right? And buying ETFs at relative lows provides a safety net should $AMZN decide to develop biotech drugs, get into the fracking business, etc., etc.

New purchases this week:

$BBP - Sold off due to large price drops in $CELG, $ALXN, $GILD, etc.

$IYZ - Sold off due to $S/$TMUS merger drama plus $T standing for Tanking.

$XRT - Sold off due to weak retail performance, but what's interesting about $XRT is that $AMZN, $NFLX, $WMT, etc. are all holdings. So it's partially a play on buying in favor holdings at a discount due to out of favor holdings.

Current performance:

$OIH +12.41%

$XSHD +7.44%

$RYE +12.16%

$PMR +2.38%

$OUSM +4.84%

So, the moral of the story is to buy ETFs early in a bull market. Brilliant, right?

Honestly, this approach seems like a much safer way to short-term trade. $PMR has been the weakest holding, and even it was up ~6-8% at one point.

Disclosure: I am/we are long ALL ETFS MENTIONED.

Additional disclosure: I am a talking cat on the internet - not an investment advisor.