The ETF Total Return was started on May 1, 2005 and focuses on very low beta (low volatility) ETFs (Exchange Traded Funds). As you can see from the chart to the right and the table, below, the performance for this portfolio has been excellent. Dividend income is re-invested.
The ETF Total Return seeks to capitalize on broad market and/or total exchanges that are represented by an ETF. Each position also must have a given strong recent technical buy signal.
The goal for this portfolio is to maximize return while minimizing the frequency of trades.
The chart on the upper right represents the total real profit generated from this portfolio for the current year, compared to the net gain or loss of the benchmark S&P 500. The bar on the left represents the Net Total Gain or Loss for the year. The next bar to the right represents the Net Cash Gain or Loss for the year based on closed positions. Some of the closed positions could have been opened in prior years, but will show up in this year's chart if they are closed (sold) in this current year. Broker trading fees are included in these calculations. It should be noted that we also record interest income derived from Money Market rates on any cash held in the portfolio. Interest is calculated on a weekly basis and is a component of our total return.
Portfolio History:
Investor Profile:
The ETF Total Return is designed for virtually any size investor who is looking for low beta, longer term positions in a reasonably well diversified portfolio.
Investment Range:
Based on the number of trades executed annually in this portfolio, the minimum investment basis we recommend for following this portfolio is $5,000 and up.
Objective:
The ETF Total Return’s objective is to generate a maximum return with a minimum of trades. This portfolio stays fully invested in most markets. In down or bear markets this portfolio can hold long positions in short-type ETFs to take advantage of market consolidations.
Diversification Strategy:
The ETF Total Return is limited to only five positions, however it uses large "baskets" of stocks available in ETFs to maintain a reasonably broad level of diversification.
Balanced Assets:
A key element, closely associated with diversification, is distribution of assets across all positions. We never load up on a single ETF. Rather, we invest about the same number of dollars in each of the 5 positions.
Trading Strategy:
We use a combination of technical and fundamental analysis to find the best ETF for this portfolio. We look for positions with pricing trends that have momentum in the direction we want the ETF to move. We do not buy unless the ETF has a recent technical buy signal. We also look for positions that are sensitive to the current economic climate of the market. Limit orders, only, are used to put us into a new position. Stop Loss orders (market and trailing) get us out of a position.
Trading Frequency:
We keep the portfolio at 5 positions most of the time. We do not ascribe to the buy-and-hold philosophy. However, the positions in this portfolio tend to be held significantly longer than some of the other TurnerTrends portfolios. The table, below, has our current average age of the positions in the ETF Total Return. All of our new position trades are added to the portfolio once a week, at the beginning of the trading week.
Exit Strategies:
The ETF Total Return utilizes 2 very specific exit strategies. What this means is we always know (and our subscribers know) exactly what price we will sell or cover to exit each ETF.
Depending on the Market Trend and the individual ETF, the ETF will have one of the two possible Stop Loss settings:
The Standard Stop Loss is a setting that is just outside the statistically likely weekly pricing swing of the ETF. This setting is large enough to keep us out of whipsaws, but tight enough to get us out if the ETF’s price trend moves against us.
The Aggressive Stop Loss strategy is designed for ETFs that have reached a combination of significant profitability and is in a market that is moving contrary to the pricing growth of the ETF. In these instances, we may use a trailing Stop Loss or a Market Stop Loss that is very tight to the then current trading price of the ETF.
A single ETF in this portfolio may move from one of these Stop Loss strategies to another, during the time it is held in the portfolio.
Stop Losses are set, generally, one time per week and are included in the list of portfolio ETFs available to subscribers. However, in a rapidly changing market, we may issue update bulletins at any time during the week.
Portfolio Manager:
Mike Turner
How to use this Portfolio:
TurnerTrends does not invest your money for you. We are an informational service only. With a Silver, Gold or Platinum subscription to TurnerTrends, you get complete access to this portfolio.
Most subscribers will pick one or more of our portfolios to follow on a trade-for-trade basis. We provide you with a complete list of our planned trades each weekend, before we make those trades at the beginning of the week. This lets you get into the market at the same time that we do.
Portfolio Risk Rating:
ETFs tend to be less risky than the average stock, but all investments in the market come with a degree of risk. You should always consult your investment professional before following any of the TurnerTrends portfolios.
Third-Party Verification:
Our performance numbers are accurate and truthful, and are validated and reported by the independent watch-dog organization, The Hulbert Financial Digest.
Historical Performance:
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*Past performance does not guarantee future results. TurnerTrends makes no representations or warrants that just because a stock would have made a profit in the past, using TurnerTrends buy recommendations or sell recommendations, it will make any profits in the future. It is possible that these same stocks will lose money in the future using the TurnerTrends stock recommendations.
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