Sunday, December 5, 2010

Buy and Hold vs. Moving Average ETF Investing 12-3-10

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

Excellent week in the markets this past week! Dow was up almost 300 points and the S&P 500 was up over 35 points. After 3 weeks of relatively unchanged weeks, the markets really latched on to news that Europe will be even more proactive in stimulating a recovery.

As you already know, our ETF investors were quite happy. The buy and hold ETF investor gained over $450 in the balanced ETF portfolio. The moving average investor didn't do as well but still made nearly $300 for the week in a similar portfolio.

Here's the weekly update:


ETF Portfolio Value% Gain
Buy and Hold$16860.18 67.9
Moving Average$11959.72 19.1

(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.

No 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)
Vanguard European Stock (VGK)
Vanguard Pacific ETF (VPL)

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