A friend of mine claims to have found the holy grail - he uses the screening tool on etfzone.com and sorts all the funds by their one year return. He buys the three/six worst performing funds (based on one year return) that also have a three month return that is positive. He holds till he makes about 10% then sells. He does not hold any position longer than 90 days. Any else ever tried this?
Does anyone else have a short term ETF strategy? I'd like some buy/sell signals based on technical analysis.
I don't know if your friend found the holy grail or not but this strategy might work in a bull market which is to some extent ensured by the funds positive returns for the last 3 months. In general this strategy is not bad & in my mind it should be profitable. Now your friend should start his own newsletters subscription.
I know i'm going to sound incredibly thick for asking this, but, what is an ETF? Are they the same as closed end funds? Do they trade at +/- NAV etc? Thanks
Yeah it is pretty much like a sector rotation / relative strength stragegy. Anyone care to share their experience with buying long term underperformers vs. high flyers?