ETF Investing and ETF Trading Portfolios

We have created several portfolios of Exchange Traded Funds (ETFs) that are based on our Top 100 Watch List of Exchange Traded Funds. Use these ETFs to allocate for your investments depending on how active you want to be and your tolerance for risk. We have also created one portfolio that combines both Mutual Funds and ETFs. This portfolio is for the person who wants a core of Mutual Funds investments that does not change much combined with a more active component using ETFs that takes advantage opportunities in the current market environment.

Basic ETF Portfolio - This list of Exchange Traded Funds is a basic diversified portfolio using traditional asset classes of the most active ETFs available to investors. This is the portfolio we have been tracking the longest.

ETF Investing Portfolio - This is a portfolio of Exchange Traded Funds that is similar to the Basic Diversified Portfolio, but includes some exposure to additional asset classes to enhance performance results.

Combined ETF & Mutual Fund Portfolio - We consider this portfolio to be the best of both worlds. It consists of both Mutual Funds and Excahange Traded Funds (ETFs). For some asset classes active management provides more value than others. This is true more for Small Cap Stocks than it is for Large Cap Stocks. Given the opportunity to structure a portfolio using either type of instrument, this is how we would build our portfolio.

Investing in Exchange Traded Funds is an alternative or supplemental approach to Mutual Fund investing. ETFs should not be used for dollar cost averaging. They should be used when your portfolio is large enough to buy at least 20 shares of each of these exchange traded funds so that you don’t spend too much in commissions to implement these strategies.