Investor B checked the 10 ETFs from the balanced ETF Portfolio over the weekend. As you may recall, he is using a 50 day/200 day moving average strategy where when the 50 day moving average is above the 200 day, that is a bullish or buy signal. When the 50 day moving average is below the 200 day moving average, that is a sell/bearish signal.
In the 10 ETF balanced portfolio, only one ETF is giving a buy signal and that is iShares Barclays Aggregate Bond (AGG). AGG was in a buy signal last week as well so there was no change required in the portfolio. However, the iShares Barclays 1-3 Year Credit Bond (CSJ) ETF switched from a buy to sell so Investor B closed his position after only 1 week.
That is a problem that I see with this hypothetical experiment... there might be mixed signals in a side-ways market causing a significant number of trades. But overall the goal is to find out if an active ETF trading strategy is better or worse than a buy and hold stratgey.
To view the balanced ETF portfolio, go here.
To read more about the moving average trading system, go here.
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