DecisionMoose evaluates nine index funds to determine which broad asset class currently provides the greatest opportunity for gain. The portfolio only holds one fund at a time.
The ETFs used are as follows:
Cash or Money Market Fund (3 month Treasury)
Long-term zero-coupon Treasury bonds (BTTRX) * (See bottom of page for alternative funds)
Large cap US stocks (SPY)
Small cap US stocks (IWM)
Gold Bullion (GLD)
Europe 350 stocks (IEV)
Latin America 40 stocks (ILF)
Japan stocks (EWJ)
Pacific ex-Japan stocks (EPP)
The selection criteria is proprietry.
When the model gives a signal, 100% of the portfolio is immediately switched from the previous position to the new one. All signals are published weekly on Sunday evening so all trades occur at the Monday morning opening price. (Note that DecisionMoose attempts to purchase the selected ETF for up to 2 weeks at a price that is at or lower than the last closing price.)
Alternatives to Long-term Zero-Coupon Treasury Bonds BTTRX
BTTRX is a mutual fund. The ETF alternatives are TLT, EDV, and ZROZ. Note that a lack of liquidity in some ETFs may exacerbate their volatility. The chart below shows the performance of the four funds for most of 2011.