As the name implies, the ETF Channel Flexible Growth Investment Portfolio
is designed to seek growth for investors
— anywhere and everywhere. The key to the program is our
portfolio strategy allows us complete flexibility in terms of asset allocation as there are no predetermined guidelines as to
the level of stocks, bonds, cash, regions, countries, sectors, commodities, or even asset classes in the portfolio! In short,
this is a completely flexible portfolio designed to follow the performance trail wherever it leads us.
Go Where the Growth Is
One constant in investing is leadership is always on the move. Thus, it is vital to employ a system that can adapt to
ever-changing market environments. For example, everybody knows that whatever was hot last year is often this year's dog.
The ETF Channel Flexible Growth Investment Portfolio
consists entirely of low-cost, tax efficient ETF's (Exchange Traded Funds) with an overall objective to ''go where the growth
is.'' More specifically, from a universe of over more than 1,000 ETFs, the ETF Channel Flexible Growth Investment Portfolio will focus each week on only the top performers.
Play Both Sides of the Game
If the ''Tech Bubble Bear'' and the ''Credit Crisis Bear Markets'' taught investors anything, it is that a long-only
to investing is no longer sufficient. It is our humble opinion that no investor wants to remain invested in the stock market
during brutal declines. And why should they — today, there are tools available to all investors that can profit
from declines in stock prices.
In short, we believe investors MUST have the ability to make money in both rising and falling markets.
It is for this reason that 50% of the ETF Channel Flexible Growth
Investment Portfolio is designed to profit from both rising and falling markets. In short, we want
to be fully invested
in stock market indices (via ETF's) when stocks are rising and we want to be short the market (again, via easy to use exchange
traded funds) when the market are falling.
The ETF Channel Flexible Growth Investment Portfolio
The ETF Channel Flexible Growth Investment Portfolio is really two
portfolios in one. You see, we've
combined two of our favorite approaches to money management into one, easy-to-use, ETF portfolio.
Here's how it works: One-Half of the portfolio is allocated to our flexible ''go anywhere growth'' strategy and the other
half is dedicated to a ''market timing'' strategy that can profit in both rising and falling markets.
The idea is to have the flexibility to make money in just about any market environment and to seek growth just about
anywhere in the world (and in almost any type of investment).
How the Portfolio Works
At the beginning of each week, we let the computers review thousands of indicators. We start by asking one question only:
Should the ''market timing'' portion of the portfolio be long this week? Should we be short? Or should we be ''out'' of the
market and sitting in cash?
Next, we turn to the question of where the growth is. Every ETF in our universe is ranked in terms of relative strength and
momentum. Next, we create a list of the top 20%. From there, our team reviews each for liquidity and technical health.
It is important to note that while the rankings of the ETF’s are done by computer, the final allocation decision rests with
the managers who will take risk factors and current market conditions/themes into account when creating the portfolio. Thus,
this is not a ''black box'' approach to investing — there are actual humans involved with the management of the
Next, we compare our existing holdings to each of the week's ETF Channel ''contenders.'' If one of the new kids appears to
offer more upside or has a substantially higher rating, we don't hesitate to make a change.
We Keep Things Simple
There's nothing fancy here... no options... no day trading... no complicated transactions. We tell you EXACTLY what and
when we buy and EXACTLY when we sell. It really is that simple — and it only takes a few minutes a week.
To sum up, we do all the legwork, we tell you EXACTLY what we are about to do and why, and then we follow it up with a
performance summary every week.
Let's Talk Performance
Before we decided to go ''live'' with the strategy, we thoroughly tested our systems. In fact, we hired the largest
institutional research firm in the country to conduct an independent test of the systems. The tests found that by making minor
changes to the portfolio each week and then re-balancing the portfolio on a monthly basis, the system had impressive
Between 1/1/96 and 12/31/09, which was a period that contained one of the greatest Bull Markets of all time and a couple of
the worst Bear Markets in a generation, the strategy would have produced an annual compound rate of return of more than
+27% per year (27.34% per year to be exact).
At that rate, based on the ''rule of 72,'' a portfolio doubles in value every 2.6 years! Not bad for a strategy that only
requires about 15 minutes a week to follow!
The test was enough to convince us to go live with the portfolio. Below is the historical testing we did from 1996 thru
|ETF Channel Flexible Growth
|System Test Results From
(As of 9/30)
The above return calculations are based on independent system testing. It should be noted that although the System Test was
performed by an independent company, test results do not represent actual trading, do not take into account payment of
commissions nor reinvestment of dividends, have inherent limitations, and are for informational purposes only. Past
performance is not a guarantee of future results.
So, if you are looking for a portfolio with no limits (and no excuses) as to where it can invest, coupled with a
disciplined risk management system, the ETF Channel Flexible Growth
Investment Portfolio may be just the ticket.
What You Receive:
Before anyone becomes a subscriber to our service, we feel it is important for them to understand exactly what they will
be getting from us. So here's a summary of the reports you will begin receiving once you've signed up for a free trial:
Real-Time Trade Alerts — We send a real-time ALERT! via
BEFORE every trade we make. These live reports tell members EXACTLY what we are about to do and why we are doing it. And to
avoid any conflicts, it is our policy to wait until after we have received the ALERT to actually enter our trades. Each
- ETF Name
- Ticker Symbol
- Limit Price
- Position Size
- The Reasoning Behind the Trade — We believe it is vital to understand the reason WHY a trade is being
Daily State of the Markets — As an
ETF Channel Flexible Growth Investment Portfolio subscriber, you'll receive
our ''Daily State of the Markets'' market analysis and commentary each morning BEFORE the opening bell.
Let's Talk Price
The ETF Channel Flexible Growth Investment Portfolio is
a ''pro level'' portfolio that can easily replace your broker recommendations and those mutual funds in your portfolio. In short,
you can be your own portfolio manager for just $41.99 per month!
The analysis and information in this report and on our website is for informational purposes only. No part of the
material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither
the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any
investment program. The opinions and forecasts expressed are those of the editors of ETF Channel and may not actually come to
pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any
specific security nor specific investment advice. Investors should always consult an investment professional before making
Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase
any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually
come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of
their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.
The analysis provided is based on both technical and fundamental research and is provided ''as is'' without warranty of
any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be
reliable, they cannot be guaranteed.
The information contained in the ETF Channel Flexible Growth Investment Portfolio is provided by Ridge Publishing Co. Inc.
One of the principals of Ridge, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management,
Inc. (HCM) a Chicago-based money management firm. HCM is registered with the U.S. Securities and Exchange Commission as an
investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Ridge is a publisher and has not
registered as an investment adviser. Neither HCM nor Ridge is registered as a broker-dealer.
Employees and affiliates of HCM and Ridge may at times have positions in the securities referred to and may make purchases
or sales of these securities while publications are in circulation. Editors will indicate whether they or HCM has a position
in stocks or other securities mentioned in any publication. The disclosures will be accurate as of the time of publication and
may change thereafter without notice.
Return calculations for the Flexible Growth Investment Portfolio are based on independent system testing. It should be
although the System Test was performed by an independent company, test results do not represent actual trading, do not take
into account payment of commissions nor reinvestment of dividends, have inherent limitations, and are for informational
purposes only. Any live trading results shown above represent actual control account values and are net of all
commissions and administrative costs.
Index returns are price only and do not include the reinvestment of dividends. The S&P 500 is a stock market index
containing the stocks of 500 large-cap corporations, most of which are US companies. The index is the most notable of the many
indices owned and maintained by Standard & Poor's, a division of McGraw-Hill. S&P 500 is used in reference not only to the
index but also to the 500 companies that have their common stock included in the index.
All returns assume reinvestment of dividends unless otherwise indicated. Investments in equities carry an inherent
element of risk including the potential for significant loss of principal. Past performance is not an indication of future