Sunday, September 26, 2010

Buy and Hold vs. Moving Average ETF Investing 9-24-10

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

Very nice week in the markets this past week. The Dow gained 252 points and the S&P 500 picked up 22. This is two weeks in a row that the market has moved higher with a strong move up this last week. The markets are at a 4 month high. For you short term investors, keep an eye as a correction may be in the near future. I think this next week will be lower.

Our buy and hold ETF investor made $270 in the balanced ETF portfolio. The moving average investor made about $126 for the week in a similar portfolio.

Here's the weekly update:


ETF Portfolio Value% Gain
Buy and Hold$15,907 58.4
Moving Average$11,318 12.7

(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.

Changes are required this week.

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)

The two ETFs indicate a buy signal with the 50 day moving average crossing above the 200 day moving so it is time to add these back into the portfolio:

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

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