Exchange Traded Funds


Exchange Traded Funds are all the rage among financial planners. The problem for individual investors is that the fees layer up quickly.

A financial advisor might charge about 1% to recommend money managers to clients. The money managers often charge another 1%. This is on top of the ETF fees. The combined 2% in “service” fees is a HUGE barrier to overcome.

Most people can manage an ETF portfolio very efficiently without having to overcome the layers of fees within the financial industry. Our solution is the ETF Tactical Trading service.

Fundamental Trends offers two global strategies: the Global Trends portfolio for long-term growth investors and the Global Asset Allocation portfolio for moderate risk balanced investors.

Either portfolio can be used as a stand alone strategy or as the core to build a stock portfolio around.

The Fundamental Trends ETF strategies manage for risk and search globally for opportunity. We seek to be positioned in growth assets, sectors and regions when they are value priced and rising in price.

We screen ETFs based upon several key criteria: expenses, valuation, internal holdings, methodology, growth outlook and other factors.

Our analysis of the internal fund holdings is unique and provides us a significant edge in building our strategies. See this Seeking Alpha article for an example of how breakdown funds:

XLE And XOP: Comparing 2 Popular SPDR Oil Stock ETFs

For complete access to our “ETF File” reports, portfolios, trade alerts and other analysis, sign up for ETF Tactical Investing today.

A Note To Beginning Investors

ETFs are a wonderful place to start investing. However, keep it simple when your portfolio is small in order to avoid unnecessary trading costs.

There is an overriding trend in the economy that is long-term. The shift from labor and capital intensive “old economy” companies towards scalable and smart “new economy” companies. While we will always need the “old economy,” many of those stocks will not be good investments due to thin margins.

I have covered a lot of the shift to the new economy here, on MarketWatch and on Seeking Alpha. If you are a beginning investor, there is one fund that is easy to begin with. Read this ETF File from Seeking Alpha:

The Only ETF You Need To Start Investing

Once you are to the point where you’d like explore other opportunities, please do subscribe. Until then, the Fundamental Trends 401k Alert service will makes sense for you as it provides asset allocation and broad information that will help you as you begin building your financial freedom.

Here’s Why To Be A Stock Seller

Over the past two weeks, I have become a net seller into this weak stock market rally. I talked extensively about it in our last webinar: https://youtu.be/_11AvJl3m_M While I do not believe what is coming is “the big one” as far as market corrections is concerned, I do think it can mimic significantly what happened in February, but for different reasons. For those who would actively try to navigate an uncertain stock market, […]

Oil Is Always Volatile Short-Term, But Is Going Up Medium Term

Summary You must differentiate oil from oil stocks. Oil is extremely volatile in the short-term and even more difficult to trade. Many oil stocks are seeing increasing cash flow, leading to higher shareholder yield, as they realize higher oil sale prices. Oil stocks are a still a screaming buy in my opinion and I think one easy play ETF will double in share price within 2 to 3 years. There […]

It’s Time To Be A Net Stock Seller

Summary Risk assets have very little support – stocks are risk assets. President Trump’s trade policy is high risk and has an unknown ending. While valuations have come in, earnings are clearly peaking, making the CAPE ratio relevant. Indexers and closet indexers will get hit badly in a correction or outright bear market. Use market strength to lighten up allocations to stocks and raise cash levels. The time has finally […]

Quick Thoughts on Oil ETFs

Our trades on the U.S. Oil Fund (USO) and PowerShares DB Oil ETF (DBO) calls have all round tripped. So has the ETF position on U.S 3x Oil Fund (USOU). As covered in the Oil Is Going To A Brazillion article I don’t think we have a lot of risk in these positions, however, this week might not be fun.

A Levered ETF Trade for the Oil Rally

This column should be read after: Two Weeks Until Oil Begins Rally To $80 It is very rare that I use levered ETFs. The opportunity has to be striking. In most cases I greatly prefer options to levered ETFs due to the expenses related to levered ETFs and other structural issues. Right now however, there is a compelling argument to use a levered oil fund. As you know, I believe […]

Two Weeks Until Oil Begins Rally To $80

For about two years, I have outlined that the OPEC/Russia oil production agreement would be successful in reducing oil inventories. I have further made the case that oil demand would continue to rise in the short term, oil supply could face disruptions and that the price of oil would rise to around $80 per barrel by this summer. We are at the doorstep to $80 now.

Here’s Why Oil is Going Higher Soon

Energy has been a top performer for decades. Over the past few years it has seen a volatile road crashing from highs. Recently oil and gas rallied into late autumn, however, there has been a recent correction. This correction is another, maybe the last, excellent opportunity to buy into the “Last Great Secular Oil Bull Market” in my opinion. 

How Low Can We Go?

This stock market is moving very fast right now. As I discussed a few days ago in “This Correction Could Have Another Leg Down:”  The surge in volatility might be more than just an isolated event, it could be a harbinger of what might come next. Well, what is coming next appears to be an actual real live bear market. We can’t be certain of course, but if Friday ends with […]

ETFs To Buy On A Flash Crash

I was near Albany, NY when the flash crash of August 24, 2015 hit. I was on my way out to a retreat with friends in the White Mountains of New Hampshire. The stock market was down 5.3% the first few days after the open that day.  Buying stocks quickly that day worked for me as I had put 10 good til cancel limit orders in before I left for […]