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The Strategy of YourETF hinges on four basic elements: The Exchange Traded Fund (ETF), Risk Management, Asset allocation and Sector Rotation. The Portfolio Implementation Procedure is listed at the bottom of this page.

THE ETF

The exchange traded fund offers excellent diversification, all in a single instrument that trades intra day with the ease of a single stock. Purchased and sold through any broker. ETF expense ratios are less and generally have less restrictions then mutual funds.

RISK MANAGEMENT

The exchange traded fund (ETF) offers excellent risk reduction through diversification; often into hundreds of individual holdings per each ETF. YourETF.com ranks each ETF holding and the portfolio with a risk ranking scored 1 through 10 based on historical price volatility in order to assess and manage your desired risk level. Price volatility has historically proven to be one of the most accurate measurements of a given investments risk.

ASSET ALLOCATION

During prolonged down trends in the market YourETF will recommend a more conservative approach raising bond and money market positions. YourETF does not believe in buying and holding in a long term bear market. Bond ETF's, Money Market, and Stock ETF's can be used in our portfolio mixes. When the market is in a long term down trend why be in the market 'Don't fight the trend' get out of the way. You will be in a Money Market position with YourETF during those long term Bear markets.

SECTOR ROTATION

YourETF will keep your investments in the areas of the market that are performing best in any given phase of the current economic cycle. Why be in the lagging sectors of the global economy that are currently out of favor? It is aggregate corporate earnings expansion or contraction that moves the worlds markets and sectors plain and simple. It is easy with only a few ETF's to participate in the various sweet spots of the market, without risking overexposure to any one area. If an investor wishes a reduced risk level or increased income distributions, YourETF offers multiple ETF portfolios with just those objectives in mind. You will be rotated into the currently strong areas of the market. Moving your entire portfolio is as easy as trading only a few stocks. Why be stuck with a bloated immovable portfolio? The mutual fund industry typically uses the S&P 500 as a comparative Benchmark. At YourETF we believe that the S&P 500 is not a good Benchmark due to it's underperformance to several other indexes that offer far greater performance with lower levels of risk. In the short table of Basic Market Indexes on the home page you can see that the S&P 500 has more or the same risk with less performance than two (The VTI and the MDY) indexes in this very abbreviated selection of Index ETF's.

YourETF PORTFOLIO IMPLEMENTATION PROCEDURE

Buy, Hold or Exchange all of YourETF selections always using a Limit Order (Some ETF's have poor pricing issues due to volatility, caused by low daily trading volume) if a purchase or sale is required; to match all of the holdings in your chosen YourETF Portfolio. This should be done as soon as possible upon receiving the Monthly revision or the sign up of a new YourETF membership. You will receive a monthly e-mailed market and portfolio update received in the first week of the month. There will only be one update a month. I have determined that providing new information and updates is best done on a monthly basis in order to minimize premature false moves and undesirable performance due to portfolio churn or excessive trade. At the original Portfolio setup you should equal weight all four YourETF positions at 25% per each holding in your personal Portfolio. When rotating out of one investment into another during a portfolio change; exchange the entire position or positions into the new holding or holdings. If a portfolio requires re-balancing we recommend only doing so on an annual basis, as to prevent excessive trade or churn problems of trade commission expenses and overall hassle.