TRADE ALERT: CORE PORTFOLIO

Our first trade alert to ETF Yourself subscribers

Photo by Lukas Blazek on Unsplash

NOTE: in a recent post to paid ETF Yourself subscribers, I presented the then-current CORE ETF portfolio I run as the largest (40%) portion of my personal portfolio, alongside the YARP dividend stock and MacroTraxx portfolios.

Since we transitioned ETF Yourself on September 1 to be a combination of direct access to the CORE ETF portfolio, an enhanced ETF research deck and other proprietary investing tools, this is the first model change in CORE. I’ll also review this briefly in our live Zoom session at 4pm ET today. I hope to see you there! RI

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Here’s today’s trade alert for CORE ETF. The trades are described first, then the current portfolio (after today’s adjustments) is shown, and then I have more detailed comments below that. This is how I’ve done things with this portfolio since I started managing it, back when AOL was the dominant internet access provider!

Note that for now, I am leaving the options in here, as that is how we run it in the full SIRG service. Historically, I’ve either used inverse ETFs, volatility-linked ETFs, or put and call options to complement the main portfolio of equity and other mainstream ETFs. Depending on the feedback we get during this first “transition month” in the ETF Yourself service, we’ll either keep the options or run a no-options version where ETFs are used instead of put and call options. Your questions and feedback are always welcome.

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TODAY’S CORE MODEL CHANGES

• Selling out of XLG, leaves 15% in SPHD as the only equity position, excluding options

• Adding to GOVI to get to 25% in that Treasury ladder ETF

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Rest of portfolio is T-bills out to 7 year Treasuries, across 4 ETFs, totaling 50% of portfolio

Cash goes from 11% to 9%, which means there's more buying to do...soon

(see detailed notes below trade grid)

Comments

I don't recall any time I've been 84% in (US Treasury ETFs + cash). Back in 2020, as the pandemic was setting in, I recall getting to 70% USTs plus equity short positions. But with options there to try to exploit a sudden drop OR sudden spike in S&P 500, and rates coming down from highest levels in 15 years, the plan is straightforward: bonds might be where the total return comes from rest of this year, along with modest contributions from certain perceived "safer/lower volatility" segments of the stock market.

Let's see if anything changes soon. But this is one of those times where I'm trying quite hard to find something with a smooth, low-risk ride up in stocks, and coming up empty. Yet the short side is not ready to commit yet as an offensive weapon for me. I expect all of this to be clearer very soon.