by Monty Pelerin
Monty Pelerin’s World
Another view of ETFs is available from ETF Daily News. Their approach differs from the Dynamic Momentum System (DMS) used here, but those interested in ETFs should find value at this site.
There are major differences between the DMS approach and the one at ETF Daily News. The DMS approach focuses on short-term opportunities, trades frequently and is not a comprehensive trading strategy. DMS was designed to allow one to be aggressive with a small portion of one’s portfolio. If used, it should be used in conjunction with, not as a substitue for, a properly designed portfolio. The ETF Daily News approach could be used to develop a diversified portfolio.
No representations are made regarding the outcomes from using these rankings.
The information provides another way to approach ETF investing. Regardless of what system or philosophy you follow, be aware that correlation exists in markets. Diversification as a protection tends to break down in market melt-ups or melt-downs, although bonds are probably the best protection against stock movements.