ETF Focus List (Nov 2018)


Summary

To protect the integrity of our picks, the focus ETFs will be found in an article within the website each month.

These are the highest conviction ETFs to add to asset allocations in November 2018.

Look to buy around the 200-day moving averages and when RSI falls below 30.

Use the “bottom fishing” prices for second entries on any ETF that violates the 200-day moving average.

Scale in using GTC limit orders and do not overextend on your asset allocation.

The Global Trends ETF approach is to use a tactical asset allocation strategy to improve the risk-adjusted returns of passive management investing. 

Tactical asset allocation using ETFs is a a fairly straightforward 2-step process.

First, build your core portfolio using the PowerShares QQQ which I have discussed several times as the best index fund for today’s technology and consumers. If you want to add a dividend component to your core, then select one or two of the dividend ETFs.

Second, you will have to determine which ETFs to tactically invest around QQQ. I always list the SPDR Select Sector ETFs on the ETF Focus List as they cover all eleven segments of the S&P 500 (SPY). These are very efficient ways to participate in tactical sector rotation. 

Other funds listed can be used to add further exposure to growth and value themes. In ideal situations you will find ETFs that offer both. 

I have included in the list below, ETFs that I believe offer, or will soon offer, both growth and value opportunities. 

Core Index ETF 
PowerShares QQQ (Nasdaq 100)(QQQ)
Core Dividend ETFs 
WisdomTree US Quality Dividend Growth(DGRW)
PowerShares HY Equity Dividend Achievers(PEY)
ProShares S&P MidCap 400 Dividend Aristocrats(REGL)
SPDR Select ETFs 
SPDR Select Materials(XLB)
SPDR Select Communications Services(XLC)
SPDR Select Energy(XLE)
SPDR Select Financial(XLF)
SPDR Select Industrial(XLI)
SPDR Select Technology(XLK)
SPDR Select Consumer Staples(XLP)
SPDR Select Real Estate(XLRE)
SPDR Select Utilities(XLU)
SPDR Select Health Care(XLV)
SPDR Select Consumer Discretionary(XLY)
Industry Specific ETFs 
iShares Global Clean Energy(ICLN)
iShares North American Tech-Software(IGV)
iShares US Telecommunications(IYZ)
SPDR® S&P Oil & Gas Explore & Production(XOP)
International ETFs 
iShares MSCI Australia(EWA)
iShares MSCI Canada(EWC)
iShares MSCI Mexico(EWW)
iShares India(INDA)
KraneShares CSI China Internet ETF(KWEB)
iShares MSCI China(MCHI)
iShares MSCI India Small-Cap(SMIN)
Commodities & Alternative Asset Classes 
Central Fund of Canada(CEF)
Teucrium Corn ETF(CORN)
Aberdeen Physical Silver Shares(SIVR)
iShares Silver Trust(SLV)
Teucrium Soybean ETF(SOYB)
U.S. Oil Fund(USO)
U.S. Oil Fund 3x(USOU)
ProShares Short VIX Short-Term Futures(SVXY)
Fixed Income & Currency ETFs 
iShares 7-10 Year Treasury Bond(IEF)

Disclosure: I am/we are long QQQ, ICLN, KWEB, IYZ, XLC, XOP.

I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it. I have no business relationship with any company whose stock is mentioned in this article.