Saturday, July 24, 2010

Buy and Hold vs. Moving Average ETF Investing 7-23-10

Buy and Hold vs. Moving Average ETF Investing
(past 12 weeks)

Pretty good week... 4 out of 5 days the markets moved up. There were some good earnings reports that helped investors feel a little more comfortable about stocks. The DOW moved up about 327 points and the S&P 500 moved higher by about 36.

The buy and hold ETF investor made about $595 in the balanced ETF portfolio. The moving average investor made about $323 for the week in the same portfolio.

Here's the weekly snapshot:


ETF Portfolio Value% Gain
Buy and Hold$15,212 51.5
Moving Average$10,988 9.4

(Started in March 2009 with $10,000 in each portfolio)

Moving Average Update

Each week, the moving average investor compares the 50 day MA against the 200 day MA to see if he should sell (or buy) any of the 10 ETFs in the balanced ETF portfolio.

The Spyders and the Vanguard Total Stock Market are both on the sell bubble to sell. We'll wait another week and see.

Invested:

SPDRs (SPY)
Vanguard Total Stock Market (VTI)
iShares Russell 2000 Index (IWM)
Vanguard SF REIT (VNQ)
Vanguard Emerging Markets (VWO)
iShares Barclays Aggregate Bond (AGG)
iShares Barclays TIP (TIP)
iShares Barclays 1-3 Yr Credit Bond (CSJ)

Not Invested:

Vanguard European Stock (VGK)
Vanguard Pacific ETF (VPL)










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