In his second book on ETF investing, “Beating the Market, 3 Months at a Time”, ETF Guru Marvin Appel writes about an ETF portfolio that lowers risk and increases returns in just one hour, every three months.
Appel’s strategy starts with a set of broadly diversified funds which represent distinct areas of the market. Rather than holding all funds, investors select certain funds from the menu which potentially give them an opportunity to perform better than the average.
Generally, if a holding in a portfolio happens to be among the best performers, it remains in the portfolio. Otherwise, it is replaced by the newest leader out of the set that is not currently a part of the portfolio. Appel advises investors to assess the portfolio every three months. Using this strategy, selecting the top international equity ETFs would have returned 17.9% annually from 1979-2007. A comprehensive Directory of International ETFs is available at ETF MarketPro.
Read the full article for more information about the strategy and Marvin Appel.