Updated portfolios on pages

August 2010 Newsletter

Data through July 25th, 2010

ETF Portfolio Update

All of the EZTracker ETF Portfolios were up for the month in a market that was less than optimal for investors. We continue to make changes to the portfolios as necessary to seek performance. You will also notice that there are name changes to the BIG 6 Portfolio and the EZ5 Portfolio. This was necessary to reflect the more accepted names of Aggressive and Moderate Portfolios.

? In the Aggressive ETF Portfolio: Sell SPDR Gold Shares (GLD) and buy SPDR S&P Emerging Asia Pacific (GMF) with the proceeds. ? In the Moderate ETF Portfolio: There are NO CHANGES to the Portfolio. ? In the Fidelity 25 ETF: Sell S&P Mid Cap 400 Value (IJJ) and the Russell 2000 Small Cap Value (IWN) and use the proceeds to buy

equal dollar amounts of MSCI Emerging Markets (EEM) and S&P Mid Cap 400 (IJH) ? In the Vanguard 46 ETF: Sell Vanguard Small Cap (VB) and use the proceeds to buy Vanguard Large Cap (VV)

Updated portfolios on pages 2-4

Each of the past four weeks has given us some significant market moves. Below are the week-to-week percentage changes for the S&P 500. We expect this volatility to continue while the market digests good earnings data and poor economic growth data. This conflicting information creates investor uncertainty and market instability.

Week of: June 28 July 5 July 12 July 19

Weekly % change -5.04% +5.42% -1.22% +3.55%

We've added two new ETF Portfolios to our ETF newsletter: ? The Vanguard 46 ETF Portfolio ? The Fidelity 25 ETF Portfolio

These two new portfolios in our ETF Newsletter are terrific opportunities for EZTracker subscribers who have accounts at Fidelity or Vanguard for their IRAs or other investments (as well as for anyone who is interested in starting an ETF portfolio). These ETFs provide good coverage of the major market segments and the commission-free status allows investors to start a portfolio with a small amount of cash.

Fidelity: Fidelity account holders may now trade 25 ETFs commission-free. These ETFs represent major market sectors with

excellent liquidity. For more information use the following link: .

Vanguard: Vanguard account holders may trade 46 ETFs commission-free. The Vanguard ETFs provide a wider range of market

sectors than the commission-free ETFs at Fidelity but some of the individual funds may have lower trading volume requiring care in placing orders. For more information: .

News You Can Use

Each month we post our market comments on . We know many of you are interested in our observations as well as information about market trends so we encourage you to go the website every month. Go to and click on News You Can Use in the green horizontal menu bar.

This month you'll also find links to several articles on a range of topics including the financial overhaul, earnings reports, and a continuation of mortgage-market issues.

Aggressive & Moderate ETF Portfolios

Performance Through June 27, 2010

Aggressive ETF Portfolio Moderate ETF Portfolio* S & P 500 Index

Month 6/27/10

to 7/25/10

2.11% 3.59% 2.41%

2010 YTD

-9.45% -2.66% -1.12%

2009 2008 2007 2006 2005 2004

30.14% 17.50% 26.46%

-23.37% -12.28% -37.03%

22.66% 27.58% 13.11% 15.39%

-1.24% NA

NA

NA

5.49% 15.79% 4.91% 10.88%

*EZ5 Portfolio started 2-26-07 Note: Past performance does not guarantee future results. The EZTracker and S&P 500 performance is based on total returns including dividends and capital gains. Returns exclude the impact of any trading costs (commissions).

The ETF Portfolios seek to identify the top performing market segments for timely investment.

The last three pages of the newsletter provide data on all of the ETFs tracked by EZTracker. The Aggressive portfolio consists of funds selected based on performance and may include the use of a high performing country fund. The Moderate portfolio excludes sector, country and short funds.

The EZTrackerETF portfolios do not use trailing stop-loss orders. Individual investors should consider them for managing their portfolio (see page 4).

EZTrackerETF portfolios UPGRADE positions each month. Quite often we change positions monthly. These are not buy and hold portfolios. You need to keep current with the changes we make each month and make them when the newsletter is published. The EZTrackerETF portfolios are published on the last Sunday of every month.

ETF Portfolios 07/25/2010

AGGRESSIVE ETF PORTFOLIO

Liquidate: SPDR Gold Shares (GLD)

MODERATE ETF PORTFOLIO

Liquidate: No Changes To Portfolio

Use the proceeds to buy equal dollar amounts of: SPDR S&P Emerging Asia Pacific (GMF)

Updated Aggressive Portfolio ? July 25, 2010

Ticker

%

SPDR S&P Emerging Europe

GUR 16.8%

iShares DJ U.S. Real Estate

IYR

18.1%

SPDR KBW Insurance

KIE

17.3%

Wisdom Tree India Earnings

EPI

16.2%

SPDR S&P EM Asia Pacific

GMF 15.1%

SPDR S&P Emerging Latin America

GML 16.5%

Your percentages may vary based on the start date of your portfolio and the number of shares purchased.

Moderate Portfolio ? July 25, 2010

Ticker

SPDR Barclays Capital High Yield

JNK

SPDR S&P Emerging Europe

GUR

PowerShares High Yield Dividend

PEY

iShares All Asia ex Japan

AAXJ

SPDR S&P Emerging Latin America

GML

% 30.4% 16.8% 19.9% 16.4% 16.5%

Your percentages may vary based on the start date of your portfolio and the number of shares purchased.

Data on all the ETFs tracked by EZTracker is provided on pages 7-9.

2

Performance Through July 25, 2010

Fidelity 25 Aggressive ETF Portfolio S & P 500 Index

The Fidelity 25 Portfolio

Month 6/27/2010 to 7/25/2010

1.80% 2.41%

Since Inception 3/29/2010

-4.70% -5.48%

Fidelity account holders may now trade 25 ETFs commission-free. This is a terrific opportunity for EZTracker subscribers who have accounts at Fidelity for their IRAs or other investments. The 25 ETFs provide good coverage of the major market segments while the commission-free status allows investors to start a portfolio with a small amount of cash. For more information on this service, use the following link:

.

While the Fidelity 25 Portfolio has the benefit of trading commission-free, it lacks the breadth of the options available to subscribers who use the Aggressive ETF and Moderate ETF Portfolios where we select the top performers from a group of 145 options.

The Fidelity 25 Portfolio is an aggressive portfolio constructed with the four top-performing ETFs that trade commission-free at Fidelity. Subscribers who want a more conservative approach can use this model portfolio as a base, adding holdings in a money market and/or bond ETFs to moderate volatility. Each month EZTracker will update this Fidelity portfolio and data on all 25 alternatives.

EZTrackerETF portfolios UPGRADE positions each month. Quite often we change positions monthly. These are not buy and hold portfolios. You need to keep current with the changes we make each month and make them when the newsletter is published. The EZTrackerETF portfolios are published on the last Sunday of every month.

Fidelity 25 Aggressive Portfolio

Liquidate: S&P MidCap 400 Value (IJJ)

Russell 2000 Small Cap Value (IWN)

Use the proceeds to buy equal dollar amounts of: MSCI Emerging Markets (EEM)

S&P Mid Cap 400 (IJH)

Updated Fidelity 25 Aggressive Portfolio S&P MidCap 400 Growth MSCI Emerging Markets S&P Mid Cap 400 S&P Small Cap 600 Growth

Ticker IJK EEM IJH IJT

% 25.0% 25.0% 25.0% 25.0%

Your percentages may vary based on the start date of your portfolio

and the number of shares purchased.

Data on all the Fidelity commission-free ETFs on pages 10.

The Vanguard 46 Portfolio

Performance Through July 25, 2010

Vanguard 46 Aggressive ETF Portfolio S & P 500 Index

Month 6/27/2010 to 7/25/2010

2.46% 2.41%

Since Inception 6/01/2010

1.73% 1.22%

The Vanguard 46 portfolio is in response to Vanguard's announcement to allow account holders to buy and sell Vanguard ETFs on a commission-free basis in a Vanguard account. This is a terrific opportunity for EZTracker subscribers who have accounts at Vanguard for their IRAs or other investments. The 46 ETFs provide good coverage of the major market segments while the commission-free status allows investors to start a portfolio with a small amount of cash. For more information on this service, use the following link: .

We have completed back testing of the Vanguard Portfolio for the 2008 through May 30, 2010. Because of the limited number of Vanguard ETFs prior to 2008, we did not extend our back test.

Vanguard 46 Portfolio EZTracker Aggressive Portfolio S&P 500

2008 -13.71% -23.37% -37.03%

2009 26.03% 30.14% 26.46%

2010 YTD 4.43% -9.45% -1.12%

Total 13.57% -11.86% -24.91%

While the Vanguard 46 Portfolio has the benefit of trading commission-free, it lacks the breadth of the options available to subscribers who use the Aggressive ETF and Moderate ETF Portfolios where we select the top performers from a group of 145 options.

The Vanguard 46 Portfolio is an aggressive portfolio constructed with the five top-performing ETFs that trade commission-free at Vanguard.. Subscribers who want a more conservative approach can use this model portfolio as a base, adding holdings in a money market and/or bond ETFs to moderate volatility. Each month EZTracker will update this portfolio and data on all 46 alternatives.

EZTrackerETF portfolios UPGRADE positions each month. Quite often we change positions monthly. These are not buy and hold portfolios. You need to keep current with the changes we make each month and make them when the newsletter is published. The EZTrackerETF portfolios are published on the last Sunday of every month.

Vanguard 46 Aggressive Portfolio

Liquidate:

Vanguard Small Cap (VB)

Use the proceeds to buy: Vanguard Large Cap (VV)

Vanguard 46 Aggressive Portfolio Vanguard REIT

Vanguard Large Cap

Vanguard Mid Cap Value Vanguard Information Technology Vanguard Emerging Markets

Ticker VNQ VV VOE VGT VWO

% 20.0% 20.0% 20.0% 20.0% 20.0%

Your percentages may vary based on the start date of your portfolio, number of shares purchased and the addition or subtraction of cash from your account.

Data on all the Vanguard commission-free ETFs on pages 11.

Referral Rewards Program

Many of your friends are missing the benefits of EZTracker. They're confused about what to do with their IRA and other investment accounts. You can help them take a step toward a better retirement. The new Fidelity 25 ETF and Vanguard 46 ETF portfolios may be a great way for them to take control of their financial futures. Just send us their name and e-mail address, we'll send them the current newsletter. No cost, no obligation. When they subscribe ask them to put your name in the "Referred By" box on the subscription form. You'll get an extra month added to your subscription for your help. Contact us at contact@ or 609-513-8623.

ETF Information

Morningstar has an excellent ETF Center with a number of educational resources (). One of the newest ETF sites is ETF Database () which provides news, commentary and a screener.

Discount Brokers

We've updated our list of discount brokers. It's easy to access--go to the EZTracker website () and click the EZTrackerETF tab in the green horizontal menu bar. If you are making your own investment decisions, it makes sense to use a discount broker. With the trading frequency of the EZTracker portfolios, this is a financial necessity. Check out several before opening an account.

Starting your ETF Portfolio

Find a discount broker and open an online account. See our list of discount brokers on the ETF & Stock portion of our website, . Most discount brokers charge between $7 and $15 per trade. If you are paying more than that, you are paying too much. Some discount brokers (Scottrade, AmeriTrade and Schwab are three) also have retail locations you can visit for in-person service. Once your account is open, make sure you understand market orders, limit orders, stop loss orders and trailing stops.

Purchase ETFs in the same way you would purchase any stock online: Determine the dollar amount you want to invest in the specific ETF and divide it by the current share price to determine roughly how many shares you want to buy. Purchase ETFs using either a market or a limit order.

Building Your ETF Portfolio: Three Different Strategies.

1. Buy all positions in the ETF portfolio as soon as you get your EZTrackerETF Newsletter. This strategy gets you totally invested all at once. 2. Buy ONLY the NEW positions in the ETF portfolio. When we buy an ETF to replace one we are selling, buy the new ETF. This strategy eases

you into the ETF portfolios as new ETFs emerge each month. 3. Some subscribers add investment dollars to their portfolio over time. They either purchase larger dollar amounts of each ETF over time or

they purchase additional ETFs beyond the model portfolio based on their own analysis of opportunities in the market. (See the list on the last three pages of the newsletter).

Managing Your Portfolio

As one ETF drops from the portfolio, replace it with the new ETF. Some months may have no changes and some months may have several changes. Never REBALANCE your portfolio--only UPGRADE by buying the new ETFs with the proceeds of the ETFs you sell off.

Putting Cash to Work

If you are adding cash to your ETF portfolio, put it to work. Rather than adding to positions you already hold and incurring additional commission charges, consider putting this cash to work when you are buying new positions. Here's an approach we've used:

? When adding one new position, add 50% of your cash balance to the proceeds of the ETF you are selling. ? When adding two new positions, add 80% of your cash balance to the proceeds of the ETFs you are selling and split the dollar total equally

in purchasing the two new ETFs. ? When adding three or more new positions, add your entire cash balance to the proceeds of the ETFs you are selling and split the dollar total

equally in purchasing the new ETFs. While this process will lead to a wider variance from our model portfolios, you will have put your cash to work in the top performing sectors.

Cash

Maximize your potential return for any cash in your portfolio. Call your discount broker to make sure you are availing yourself of the best alternatives for your cash. Your broker may have a sweep money market account that pays a better rate of return than what you are currently receiving.

Managing Risk

We receive numerous e-mails and phone calls asking advice about an individual portfolio. EZTracker is not an investment advisor. We are publishers of financial information. As publishers, we update our portfolios monthly and move the model portfolios into or out of the market depending on our trend tracking. A decision to move out of the market should be based on your individual investment goals, comfort and assessment of the market.

 ................
................

In order to avoid copyright disputes, this page is only a partial summary.

Google Online Preview   Download