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Our
Service
ETFTide
offers individual investors a proven and systematic strategy to target top
performing ETFs by focusing on the asset classes, industry sectors and geographies
with the strongest momentum. Our proprietary ETF Ranking provides an automatic
5 ETF portfolio which you rebalance once every 4 weeks. Following the ETFTide
strategy is easy and the rewards can be quite remarkable.
Getting Started |
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Getting started with
the ETFTide is extremely
easy. Assuming you already have brokerage account(s), all you need
to decide is how much money you want to invest with the strategy.
You can start at any time as the ranking is updated weekly to insure you
begin with the most up-to-date portfolio. The ETFTide
system is run mid-morning each trading Monday and the ETF Ranking is published
on the Web site no later than 2:00 pm ET. A short Weekly Commentary is posted
on the Web site and sent to active subscribers by e-mail on Mondays, no
later than 9:00 pm ET. The latest and archived commentaries can be viewed
on the "Weeklies" page after you log in. To establish your
portfolio and keep it rebalanced, simply follow these steps:
Getting started with ETFTide:
- Log in to the
ETFTide Web site and obtain
the Top 5 list from the ETF Ranking page
- Create your portfolio
by taking five equal size positions in the Top 5 ETFs
- Hold and forget
your positions for 4 weeks
- When the 4-week
holding period is up, rebalance your portfolio by selling the ETFs
that are no longer in the current Top 5 list and replace them with
the new ones
- Repeat step 3
and 4 every subsequent 4-week period
Background |
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Convenience, low cost,
transparency and profit potential makes ETFs the preferred investment vehicles
for many investors. There are now well over 500 index ETFs available ranging
from diversified broad market funds to increasingly specialized offerings.
Alas, different asset classes and market segments can be highly uncorrelated
as they take turns leading, paced by their particular cycles, leaving the
majority of investors powerless to distinguish between ebbing and flowing
tides. As a result, ETF investors mostly position themselves in static allocations
of "safe" broad U.S. market indexes, occasionally spiced-up by home run
attempts based on semi-educated guesses, gut feelings or hot tips.
Our research and experimentation with momentum-type investment approaches
covering over 25 years confirmed consistently superior returns through all
market phases. Our founders have a track record of devising successful trading
models. They gained industry recognition and respect as ETF investment pioneers
with their innovative Trend Timing index investing method (see "About
Us" page for more details).
ETFTide offers a previously unavailable
system to intelligently harness the potential and diversification of ETFs.
Investor
Profile |
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Our typical subscribers
are long-term oriented and seek a low-maintenance all-weather investment
approach. They are aggressive enough to accept the volatility and occasional
drawdowns of the hottest ETFs in exchange for higher long term returns,
and lower overall downside risk than buy and hold investing. They do not
have the time or desire to spend their days studying markets and trading,
and with ETFTide they only need
to monitor and trade once a month. And if that is still too much, the staff
of our sister company, MARKETTREND
Advisors team, is happy to manage their ETFTide
portfolio for them.
There are no prerequisites or particular investment experience requirements,
and no complicated methodology to learn. Because of this combination of
simplicity and performance, we believe that ETFTide
belongs in any investor's portfolio. You could start with as little as a
few thousand of dollars or millions. The money can be in regular brokerage
accounts or any qualified retirement accounts that allow trading of individual
stocks. Thanks to the inherently limited downside risk and the fact that
funds are not tied up for long periods of time, ETFTide
is also well suited for managing portions of a retiree's nest egg.
Our
System |
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Our ETF selection methodology
is driven by our proprietary model for which not all details are disclosed.
After reducing the vast ETF universe to just one specimen per major ETF
category, we apply our ranking system to extract the 5 top ETFs. The ETFTide
model is purely mechanical and relies exclusively on ETF historical technical
data to identify the funds, and thus the market segments, with the strongest
momentum. We define momentum as relative strength which is quantified by
our Strength indicator. We look for strength over various time periods up
to many months. This translates into little trading with on average only
about 25% of our 5 ETF portfolio getting traded every 4-weeks, for an average
ETF holding period of close to 4 months.
Rebalancing consists of trading up your account to match the then current
top 5 funds of the ETF Ranking by selling those that are no longer listed
and replacing them with the new ones. This keeps us invested in a fixed
number of positions, and we monitor and trade on a known fixed schedule,
once every 4 weeks. Because all of our ETFs are unique in their category,
the ETFTide Portfolio is always
diversified amongst 5 distinct market segments. The ETFTide
Portfolio is always fully invested, but not necessarily in the stock market.
Since our ETF categories span various asset classes, at times our allocations
could rotate to defensive assets such as precious metals, currencies, bonds,
or real estate, which enables the ETFTide
system to outperform the broad stock indexes even during severe equity bear
markets (See FAQ on "Bear
markets").
Our
ETF Selections |
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ETFTide
strictly focuses on ETF investment vehicles because of their convenience,
low cost, transparency and the wide range of investment choices they offer.
Closed-end funds and mutual funds play no part in our system. We screen
the vast universe of index ETFs traded on U.S. stock exchanges and we
select the cream of the crop, the handful with the strongest momentum,
and the ones with the highest prospects for continued gains.
After eliminating funds with undesirable characteristics, such as not
being index-based or not having at least one year of history, we organize
them into categories by asset class, market capitalization, style, industry
sectors, and geography. At last count we have 78 distinct fund categories
for which we then select the one best ETF representative. The best frequently
is the first fund which pioneered the category, the oldest, and the largest.
The reason to select a single ETF per category is to always have a diversified
top 5 portfolio which is invested in the five strongest market categories.
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