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
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10% in Diamonds Trust DIA (SPY)
International Equities
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10% in iShares MSCI Emerging Markets EEM (VWO)
Things to note about the portfolio:
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100% in equities is an aggressive portfolio
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65% in US equities is high in today’s market environment
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There is no real estate (IYR, VNQ, ICF) or fixed income which would likely result in improved performance today