Saturday, July 18, 2009

ETF Investing Strategies: Buy and Hold vs. Moving Average Week 20

Hard to believe but week 20 of the Buy and Hold vs. Active Management ETF investing is over. You are probably aware that the market took a sharp turn up this past week. As a result, the Buy and Hold investor (Investor A) saw his account jump about $700 this past week alone. His total portfolio is now $12,666.22 for a total gain of 26%. In one week he made up most of the losses of the past 4 weeks.

Investor B (50 day moving average/200 day moving average) holds only 3 of the 10 ETF's from the balanced ETF portfolio used for this experiment and his having a much slower although less rocky ride. His portfolio stands at $10,073.68 for about a $35 gain this past week. His total gain in 20 weeks is less than 1%.

The graphical representation for the most recent 12 weeks is below. You can click on the chart for a larger, easier to read view. You can also join our free ETF newsletter (if you haven't already), and I'll send you weekly updates about this experiment.


No comments:

Post a Comment