Portfolio Design Contest Champion #3 -- Highest [Score]x[Safety]

Want access to profitable info. at SectorSurfer?

In November 2013, a Portfolio Design Contest was held by the President & Chief Sector Surfer, Scott Juds, to identify the best strategies created by SectorSurfer users.

Results were announced in December 2013 by Scott and provided details for each for our immediate use.

The purpose of this page is to help you get started using the strategy selected as "Contest Champion #3 -- Highest [Score]x[Safety]."




Saadio's Balanced ETFs Portfolio -- Highest [Score]x[Safety]

Picture
This portfolio utilizes four ETF Strategies, each optimized for Safety and Score. All 48 ETFs are 
different and the portfolio utilizes a minimal number of leveraged ETFs because they are considered to be among the most misunderstood financial products by many professionals - they are rebalanced daily, require active management and are exposed to price erosion as a result. However, as this 
portfolio demonstrates, judicious use of a few leveraged ETFs can usefully improve overall 
risk/reward performance. 


Would you like to learn a better way to select funds?  Glenn refers to using the Sharpe Ratio and watching for Max Drawdown.  Not sure what these are?  
No problem, click the button on the right for answers. >>

Portfolio Construction

This portfolio utilizes four ETF Strategies, each optimized for Safety and Score.  All 48 ETFs are different and the portfolio utilizes a minimal number of leveraged ETFs because they are considered to be among the most misunderstood financial products by many professionals — they are rebalanced daily, require active management and are exposed to price erosion as a result. However, as this Portfolio demonstrates, judicious use of a few leveraged ETFs can usefully improve overall risk/reward performance.

The Portfolio (Chart #1) holds four diversified sector and asset class rotation Strategies, rebalanced quarterly to their assigned allocation weights. Each Strategy selects the one, and only one, best-of-breed fund in its class to represent the Strategy in the overall Portfolio. The Portfolio holds only these four funds:
 
     Chart #2, Strategy #1 — Saadio's ETF Strategy #1  — 25% 
     Chart #3, Strategy #2 — Saadio's ETF Strategy #2  — 25% 
     Chart #4, Strategy #3 — Saadio's ETF Strategy #3  — 25%  
     Chart #5, Strategy #4 — Saadio's ETF Strategy #4  — 25% 

 

Underlying Strategies

Each of the four underlying Strategies is configured with a set of up to 12 funds, each representing a different slice of sector and asset class rotation available in the market. SectorSurfer's algorithms determine which fund is designated best-of-breed based on its trend leadership. The yellow line on each chart plots the performance of the strategy, which owns only the designated best-of-breed fund at any given time. This is True Sector Rotation (or serial diversification) and is a powerful investment ally best appreciated through its performance.  

Portfolio Performance

Saaudio's Balanced ETF Portfolio chart (top) plots the performance of each of the contributing strategies with the portfolio's net performance in yellow and the S&P500's performance in white. 

The overall benefit of Tactical Diversification for this portfolio, relative to the S&P500, includes: (a) 10% higher annualized return, (b) 4.5 times better Sharpe ratio, and (c) less than 1/3 the maximum drawdown.


Now you know why this fund was selected as #3 Champion for this contest!
champion_3_chart_1.png
File Size: 768 kb
File Type: png
Download File
champion_3_chart_2.png
File Size: 886 kb
File Type: png
Download File
champion_3_chart_3.png
File Size: 866 kb
File Type: png
Download File
champion_3_chart_4.png
File Size: 984 kb
File Type: png
Download File
champion_4_chart_5.png
File Size: 875 kb
File Type: png
Download File

Want access to this Champion Portfolio and other great strategies? >>>