Lowell Original
1.46%November 03 | MyPlanIQ portfolio symbol P_20658

im Lowell edits MarketWatch's ETF Trader, an investment letter employing a momentum-based exchange-traded-fund strategy for long-term investors. Large and small stocks, proposed his Sower's Growth Portfolio. This is a diversified portfolio of exchange-traded funds. The view is that a growing economy tends to create a growing portfolio.

This portfolio is heavily equity and US focused. It is a diversified portfolio of exchange-traded funds including Big-caps ETF (DIA, IYY, ONEQ, PWC), Midcaps ETF (MDY), Small-caps ETF (IWM) and foreign ETF (EFA).

The fund selection for testing the strategy is listed below with the ETF alternatives:

US Equities

• 10% in Diamonds Trust DIA (SPY)

• 15% in iShares DJ U.S. Total Market IYY (VTI, DVY)

• 7.5% in Fidelity NASDAQ Composite ONEQ (QCLN, QABA)

• 7.5% in Power Shares Dynamic Market PWC (VTV, VUG)

• 10% in iShares Russell 2000 IWM (IWO, IWW)

• 15% in Mid Cap SPDR Trust MDY (IJJ, VO)

International Equities

• 25% in iShares MSCI International EAFE EFA (VEA, EFV)

• 10% in iShares MSCI Emerging Markets EEM (VWO)

Things to note about the portfolio:

• 100% in equities is an aggressive portfolio

• 65% in US equities is high in today’s market environment

• There is no real estate (IYR, VNQ, ICF) or fixed income which would likely result in improved performance today