6 ETF Model Portfolios You Can Use – Updated through 5/3/2011

Ulli Model ETF Portfolios Contact

As announced last Sunday, I have added the Ivy ETF Portfolio in this line up. It’s indentified as Portfolio #6.

All portfolios held pretty steady during the past 5 trading days, but came off their highs made last Friday, the last day of April. The S&P 500 gained 0.74% for this period.

With a little bit of weakness having set in during the first two trading days of May, especially in the metals, it remains to be seen if this current resistance continues. As far as the 6 portfolios are concerned, your main criteria should be your own risk tolerance when making a decision as to which might be suitable for you.

Let’s review the first one (click on any table to enlarge):

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How TIPs Inflate Their Yields

Ulli TIPS Contact

You think that some of the yields to be had when buying TIPs these days are simply mouthwatering and hard to resist given the current zero interest rate environment.

Before you jump in with both feet, consider this WSJ report (subscription required) titled “How Inflation-Protected Funds Get To Inflate Their Yields:”

How would you like to triple the yield on your bonds?

Most of us can only dream. But look at the eye-popping variation in yields among funds that focus on Treasury inflation-protected securities, or TIPS, the U.S. obligations that rise in value as the consumer-price index goes up.

Among the 173 TIPS mutual funds tracked by Morningstar, the reported “SEC yields” as of March 31 ranged from minus-0.77% to 5.58%, with 12 funds yielding at least 5%. Four of the seven exchange-traded funds that specialize in TIPS displayed yields greater than 5%, with Pimco 15+ Year U.S. TIPS Index leading the pack at 6.07%.

Yet no TIPS yield more than 1.75%. How could anyone but an alchemist generate 5% or more out of 1.75% or less?

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Mutual Funds On The Cutline – Updated as of 5/2/2011

Ulli Mutual Funds On The Cutline Contact

With just about all equity funds being in the stratosphere, and above their respective trend lines, most changes occurred this week with bond and conservative allocation funds.

As per the Fed, a zero interest rate policy is being maintained, and some of the bond funds are confirming this trend by heading higher and, in some cases, having crossed their trend line (cutline) to the upside.

Despite fear of higher rates, this cutline report confirms the tendency towards lower one; at least for the time being:

PADGX is now firmly entrenched above the cutline at a position of +8 from last week’s +5.

A larger move was made by BTFTX, which moved from -4 to +7. The Vanguard Total Bond Index (VBMFX), of which we own the ETF equivalent (BND), has climbed from -8 to a -2 position and has come within striking distance of breaking through to the upside again.

Take a look:

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Gold ETF (GLD) Outshines Gold Mining ETF (GDX)

Ulli Gold and Gold mining ETFs Contact

Is there nothing an investor can count on?

A long-held gold investing maxim appears to be breaking down.

It used to be that you could count on gold-mining stocks to do twice as well as gold itself when the price of the metal was rising.

That’s what the WSJ (subscription required) reported in “Oil Prices Take a Bite Out of Gold Stocks.” Let’s look at some more highlights:

The reason: Mining-company profits went up disproportionately when the gold price rose.

That leverage made gold stocks an attractive bet for investors wanting to benefit from a bull market in the metal.

But so far this year that strategy hasn’t worked.

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ETFs On The Cutline – Updated through 4/29/2011

Ulli ETFs on the Cutline Contact

With equities gaining strongly last week to close out the month, surprising moves to the upside happened around the cutline (trend line) as well.

The Clean Energy ETF (PWB) rallied from a +2 position to +16 solidifying its rank on the bullish side. However, its momentum figures (see table) are still on the weak side.

The same applies to the Nanotechnology ETF (PXN), which came from a -7 position and crossed the cutline to settle at +11.

One of the more solid and steady advances, which has been apparent over the past couple of weeks, was PFF, which climbed from +3 to a +10 position. With all momentum figures being positive and a DD% of 0.00, this should be worthy of your attention if you are looking to deploy new money.

The Japan ETF (EWJ) made a big move from -18 to +9, but its momentum figures are still too negative. However, the largest advance of the week came from the biggest loser of the past few years. You won’t believe the rebound this ETF has made.

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Hindsight For Foresight: ETF News And Blog Posts

Ulli ETF News Contact

In case you missed it, here’s a summary of the topics that I posted to my blog during week ending on 5/1/2011.

Whether you are looking to deploy new money, or improve upon existing holdings, the Cutline tables and Model ETF Portfolios can assist you in making better investment decisions in the future, as another week loaded with uncertainties is upon us.

This week, we covered the following:

“The Ivy ETF Portfolio”

“How Low Can The Bullish Dollar ETF (UUP) Go?”

“ETF/No Load Fund Tracker for Friday 4/29/2011”

“Weekly StatSheet For The ETF/No Load Fund Tracker – Updated Through 4/28/2011”

“High Volume ETFs On The Cutline – Updated Through 4/27/2011”

“Can You Really Afford A Commission-Free ETF?”

“5 ETF Model Portfolios You Can Use – Updated through 4/26/2011”

“Getting High On Silver ETFs”

“Mutual Funds On The Cutline – Updated as of 4/25/2011”

“Crop-Focused ETFs”

“ETFs On The Cutline – Updated through 4/21/2011”