This portfolio is the ETF version of the portfolio P Goldman Sachs Global Tactical Include Emerging Market Diversified Bonds, which uses index mutul funds.

However, it is different from P Goldman Sachs Global Tactical Include Emerging Market Diversified Bonds ETFs as it is using another separate parameter Benchmarks to calculate trend scores instead. The Benchmarks parameter consists of an array of index mutual funds, each of which corresponds to the ETFs in the Funds parameter. Both parameters should have the EXACT number of funds. Otherwise, its result can be wrong. Furthermore, please make sure an ETF has a longer price history than its corresponding index mutual fund in the Benchmarks parameter since the starting date. If an index mutual fund in the Benchmarks parameter does not have a price yet since the starting date, it and its ETF will be ignored. 

It selects 3 ETFs every month from a list of candidate ETFs.

The list of candidate ETFs includes

SPY, EFA, EEM, CSJ, SHY, TLT, ..., CASH. 

For the latest list of ETFs and/or to customize a new portfolio using your own list of ETFs, click on 'Customize a New Portfolio' and then scroll down and click on 'Paremeter' next to 'Goldman Sachs Global Tactical Asset Allocation' strategy box, you will see a list of parameters. 

How to design a custom portfolio

To design/select a list of candidate funds, pay attention to the following

• Since it chooses top three funds (or top n funds if you change the parameter), you will need to make sure these candidate funds do not have too much overlapped in asset class coverage to increase diversifcation. For example, if you have two US large cap funds and a US small cap fund in your fund list, at some point, the portfolio might end up holding all of the three funds, thus making it too concentrated on a single asset: US stocks. In general, make sure one fund for each risk asset and one fund for risky bonds (long term bonds or emerging market bonds, higy yield bonds, for example).

• However, for relative 'safer' bond funds such as diversified intermediate bond funds, you can purposely enter more than one in the fund list so that when this fund is doing well, it could be chosen multiple times. As always, make sure CASH appear n times so that in the last resort, the portfolio can go into ALL CASH in some extreme situations (i.e. when all other funds are ranked below CASH). 

• You will need to handle the minimum holding periods carefully by yourself. The portfolio does NOT have any minimum holding period information. So for a mutual fund, you will use your own judgement. In general, if you have a LARGE portfolio, you can choose to use Transaction fee mutual funds whose fund-specific minimum holding period is 30 days or less. Usually, you can buy an institutional class fund that has minimum over $100,000 and pay the transaction fee charged by the brokerage. Paying such fees is actually better than using retail class funds that charge much higher annual expenses. Do your own due diligence here. 

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