Wednesday, January 2, 2013

ETF Portfolio Updates

The New ETF Bulletin that was launched on 6/8/12 ended the year on a strong note. The 2 ETF-Only Portfolios are both well positioned to continue their strong performance in 2013 and beyond.

The ETF Rotation Portfolio is an all-ETF portfolio that uses a mixture of the PFG Top-Down Approach and Technical Analysis to position the portfolio in a way that attempts to beat the market in both up and down trends. Since it began on 6/8/12 the ETF portfolio is up 10.67% versus a gain of 7.57% for the S&P 500.

The 3.1% out performance in less than 3 months is significant in nature. And when considering the lowest amount of cash the portfolio had all year was 16.7% at year-end, the risk-adjusted out performance is even more impressive.

The chart below shows the path the ETF Portfolio has taken to beat the S&P 500. They key was not falling as hard during the November sell-off. This allows a portfolio to snap back much easier when the selling ends.


The other portfolio, ETF Income Portfolio, has an objective of generating income for investors. The current yield on the portfolio is 6.0%, well above the 10-year treasury and most corporate bonds. The gain for the portfolio since 6/8/12 was 6.05%. Not surprising the portfolio is lagging the S&P 500 this year. The goal is not to beat the market; the goal is to provided steady above-average income with the potential to capture some of the upside of the stock market and more importantly to hold up better during any market sell-offs.

Take a look at the performance chart below. Besides the sell-off in November the Income Portfolio has been moving slow and steady, just as we designed.


If anyone is interested in learning more about The ETF Bulletin and would like access to the ETFs that make up the 2 portfolios please inquire at info@pennfinancialgroup.com or call 877-383-7366.

Not only do you get the 2 portfolios, but also real-time emails when to buy/sell the ETFs we cover.

AND for investors that sign up in the next 2 weeks you will get the 10+ page PFG Client 2013 Market Outlook with stock and ETF picks for the new year.

Happy New Year!

Team PFG




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