Subscribe Login

ETF Core Strategies

Aim: To trend-trade general equity ETFs so as to ride rallies and buck busts in the Australian share market.

ETF Rotation Strategies

Aim: To back the local and foreign sector ETFs with the strongest price gains over both short and long terms.

Suitable ETFs

Our Conservative share market strategy, whose signals change less frequently may not only use STW, but also other exchange traded funds such as State Street Global Advisors SPDR S&P/ ASX 50 Fund (ASX code SFY) which invests in the top 50 listed companies, Vanguard’s Australian Shares Index ETF (ASX code VAS) which invests in the top 300, iShares MSCI Australia 200 Fund (IOZ) which invests in the top 200, BetaShares FTSE RAFI Australia 200 Fund (QOZ) which invests in a ‘fundamentally weighted’ index of shares and Market Vectors Australian Equal Weight ETF (MVW) which invests in an equally weighted index of over 60 of the largest listed companies.

Our Conservative strategy can also be applied to high dividend ETFs such as Vanguard’s VHY, SPDR’s SYI and Russell’s RDV and listed investment companies such as Mirrabooka Investment Ltd (ASX code MIR), Australian Foundation Investment Company (AFI), Milton Corporation Ltd (MLT) and BKI Investment Company (BKI) whose share portfolios are representative of the Australian stock market.

Our ETF Rotation strategies comprise a Local and a Global version. These strategies uses the following listed ETFs:

  • SPDR OZF (Australian finance sector excluding property),
  • BetaShares QRE (Australian resources sector),
  • SPDR SLF (Australian commercial property sector),
  • iShares IVV (USA share market),
  • iShares IVE (non-USA developed share markets)  and iShares IAA (Asian share markets),
  • iShares IEM (Emerging markets’ shares)
  • ETF Securities GOLD (Australian gold market), and
  • BetaShares AAA (Australian cash fund).

Possible ETF substitutes

  • for OZF (Australian finance sector) are QFN and MVB,
  • for QRE (Australian resources sector) are OZR and MVR,
  • for SLF (Australian property sector) are MVA and VAP, and
  • for IVV (USA share market) are SPY, VTS, IRU and QUS.

There are no suitable ETF substitutes for IEM (Emerging markets’shares) and IVE (non-USA developed share markets).

 

The Advantage of ETFs

Equity exchange traded funds (ETFs) listed on the Australian Securities Exchange (ASX) are a simple and inexpensive way to gain a diversified stake in the top 50, 200 or 300 companies listed on the ASX or on other stock exchanges around the world (e.g. USA, Europe, Japan, Emerging Markets) thereby minimizing specific risk exposure to any one company.

Because ETFs have very liquid markets they can be bought or sold instantly through any stockbroker either by phone or online. They also have very low annual management expense ratios (MERs), normally of less than 0.3% per annum. For these reasons they are the preferred class of investment vehicle for market timing.

Further information about Australian ETFs is available from these websites:

 

ETF Core Strategies

Aim: To trend-trade general equity ETFs so as to ride rallies and buck busts in the Australian share market.

ETF Rotation Strategies

Aim: To back the local and foreign sector ETFs with the strongest price gains over both short and long terms.

Copyright © 2014, Market Timing Pty Ltd. All rights reserved.
Website by Elevate 360