The IYW is a US Technology ETF. Its three largest holdings are AAPL, MSFT and GOOGL. At its peak this past Wednesday, it was higher by 9.4% from the date it was added to our ETF Model portfolio on April 19, compared to the S&P of 5.5% during the same period of time. Why am I bringing this up? Because we are getting ready to unveil our next batch of ETF's this upcoming Monday that are meant to be held for the next 90-day period, and our theme when selecting ETF's for our members is "Know What You Own". In other words, what stocks make up a specific ETF, as that is a very important question.
Let me put this another way. Would you want to buy an ETF that consisted of technically broken stocks? Or stocks that had weak accumulation/distribution lines? Or stocks in an industry that was out of favor? Probably not. This is why it pays to study which companies are represented in a specific ETF, especially if you are looking to beat the performance of one of the biggest ETFs of all: the SPY.
In looking at performance, all 8 of the ETFs we unveiled to members on April 19 rose higher at some point from the time they were added to our Model Portfolio, though it was the IYW that outperformed the S&P substantially during the same 90-day period. And it represented the highest percentage of the portfolio, weighing in at 25%. Since its inception in October of last year, our Model ETF portfolio has clocked a very impressive gain of over 21%.
When our Chief Market Strategist Tom Bowley unveils his next batch of ETFs this Monday, July 19, at 5:00 pm Eastern Time, he will discuss his strategy in selecting and weighting the various ETFs to maximize their cumulative return. This will include demonstrating how he arrives at his picks - the "behind the scenes" mechanics. In addition, on Tuesday at 4:30 pm Eastern, Tom will be holding a webinar for members, "Q2 Earnings Season", as he points out the best quarterly earnings reports to date and then uses both absolute and relative strength indications to uncover those companies most likely to report blowout results throughout the balance of earnings season. In other words, which companies to zero in on that could provide the highest returns.
Both the ETF and Q2 Earnings Season webinars are very popular events that you don't want to miss -- and you can sign up for a FREE 30-day trial that will get you access to both events as well as all of the features of the EarningsBeats service. Just click here.
When you trade individual stocks ,you should be looking at all of the tools at your disposal to make smart trading decisions. The same goes for ETFs; dig deep beneath the surface and know what you are about to own!
At your service,