Happy New Year folks. As with any system, whether building investment portfolios or building houses, there is always a need to make improvements and tweaks in the processes along the way. During 2017 I removed 3 ETFs from the list and added 3 more. Here are the changes that were made during 2017:
- IAU – iShares Gold Trust – DELETED – Although I still think this is a great ETF and a good long-term investment, I have decided to make the Deep Value ETF Accumulator portfolio 100% equities. There is a place in a well balanced portfolio for commodities, but we no are longer investing in this asset class
- BLV – Vanguard Long-Term Bond ETF –DELETED – Same as above.
- IJR – iShares Core S&P Small-Cap ETF – REPLACED – New – SLY – SPDR® S&P® 600 Small Cap ETF. Both of these Small Cap Blend ETFs are great long-term investments. I have settled on SLY due to some slight out performance. My personal line in the sand for performance is 0.5% CAGR over the life of the funds, which is a minimum of 10 years. SLY has outperformed IJR by 0.6% CAGR over the last 12 years. A difficult decision, but that what we’re doing.
- PXI – PowerShares DWA Energy Momentum Portfolio – REPLACED – New – XLE – Energy Select Sector SPDR Fund. This was probably the most difficult change that I made to the list this year. They are both great Energy sector ETFs, but very different. I had such a difficult time deciding between the two that I ended up accumulating both. We will divest from one or the other during 2018, but I have not yet decided which one. Time will tell.
- DWM – WisdomTree International Equity Fund – ADDED – The International Large Cap Value asset class has had great long-term performance. So, we have chosen DWM to gain exposure to this asset class.
- EWZ – iShares MSCI Brazil ETF – ADDED – This particular ETF was recommend to me by my friend David Moadel, who I met on StockTwits. This single-country ETF has had great long-term performance and represents one of the largest countries and economies in the world. I was pleased to add this ETF to the Deep Value ETF Accumulator list.
Here is what the list looked like on 12/30/2017. I noticed I made a few mistakes on the list, but they were fixed. As you can see, there were a lot more asset classes going through a correction back then.
Here’s the list from 12/29/2017. One year later.
I want to thank you for viewing my website. I hope 2018 proves to be prosperous for you and your families.