ETF Investment Portfolios July 2014

Here are our favorite Exchange Traded Fund – ETF Investment Portfolios for July 2014.

ETF / Fund Name  Allocation% ReturnAllocation
ETF Investing PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Money Market FundMM2%0.00.12%
iShares Barclays 1-3 Year Credit BondCSJSTB8%0.41.78%
PIMCO Total Return ETFBONDITB6%2.35.46%
PIMCO 1-5 Year US TIPS Index ETFSTPZIPB8%1.42.18%
iShares Core Total US Bond Market ETFAGGITB6%2.04.46%
SPDR Barclays High Yield BondJNKHYB3%2.412.13%
SPDR Barclays International Corporate BondIBNDGB4%1.912.34%
PowerShares Emerging Markets Sovereign DebtPCYEB3%5.311.83%
PowerShares Nasdaq 100QQQLCG3%7.433.83%
SPDR S&P DividendSDYLCV3%4.720.33%
SPDR S&P MidCap 400MDYMCC3%4.325.53%
WisdomTree MidCap EarningsEZMMCC3%4.329.73%
iShares Core S&P Small-Cap ETFIJRSCC3%2.125.53%
WisdomTree SmallCap EarningsEESSCC3%1.624.93%
iShares Russell Microcap IndexIWCMIC2%(1.5)24.72%
iShares MSCI ACWI ex US IndexACWXIntl4%3.119.44%
SPDR S&P International Small CapGWXIntl4%4.525.94%
iShares MSCI Emerging Mkt Min Vol IndexEEMVEE4%6.38.04%
WisdomTree Emerging Mkts Small Cap DivDGSEE2%3.97.02%
iShares Dow Jones US Real EstateIYRRE6%7.012.36%
ProShares RAFI Long/ShortRALSL/S8%(0.9)2.78%
Cambria Global Tactical ETFGTAAHdg4%2.89.64%
Barclays S&P 500 Dynamic Veqtor ETNVQTHdg4%1.36.64%
GreenHaven Continuous Commodity IndexGCCCom4%(0.9)8.34%
Portfolio Return / Value100%2.511.6100%
ETF and Mutual Fund PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Money Market FundMM0.00.1
BlackRock Low Duration Bond **BLDAXSTB4%0.93.04%
Managers Intermediate Duration GovtMGIDXIGB4%2.85.74%
iShares Barclays 0-5 Year TIPS BondSTIPIPB4%1.52.04%
iShares Barclays Intermediate Credit BondCIUITB4%1.75.04%
Metropolitan West Total Return BondMWTRXITB6%2.15.76%
Metropolitan West High Yield BondMWHYXHYB4%2.09.74%
Loomis Sayles Global BondLSGLXGB6%2.46.96%
SEIX Floating Rate High Income **SAMBXFRB4%1.15.34%
Payden Emerging Markets BondPYEWXEB4%4.78.74%
Dreyfus AppreciationDGAGXLCC2%6.521.72%
PowerShares Nasdaq 100QQQLCG2%7.433.82%
RidgeWorth Large Cap Value EquitySTVTXLCV2%5.425.72%
WisdomTree MidCap EarningsEZMMCC2%4.329.72%
Scout Mid CapUMBMXMCC2%2.325.82%
WisdomTree MidCap DividendDONMCV2%6.527.72%
WisdomTree SmallCap EarningsEESSCC2%1.624.92%
iShares S&P SmallCap 600 GrowthIJTSCG2%1.725.62%
ASTON/Silvercrest Small CapASCTXSCV2%2.723.22%
Westcore Micro Cap OpportunityWTMIXMIC2%(0.2)25.22%
Scout InternationalUMBWXIntl4%3.414.34%
Harding Loevner Intl Small CompanyHLMSXIntl4%3.025.84%
iShares MSCI Emerging Mkt Min Vol IndexEEMVEE4%6.38.04%
WisdomTree Emerging Mkts Small Cap DivDGSEE2%3.97.02%
iShares Dow Jones US Real EstateIYRRE6%7.012.36%
Merger FundMERFXHdg5%2.46.35%
Robeco Boston Partners L/S Research*BPRRXL/S5%1.714.25%
Wasatch Long/ShortFMLSXL/S5%3.813.95%
AQR Managed Futures StrategyAQMNXMF5%0.80.15%
Portfolio Return / Value100%3.112.1100%
Easy ETF PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Money Market FundMM2%0.00.12%
iShares Barclays 1-3 Year Credit BondCSJSTB12%0.41.712%
iShares Barclays 0-5 Year TIPS BondSTIPIPB10%1.52.010%
iShares Barclays Intermediate Credit BondCIUITB16%1.75.016%
SPDR S&P DividendSDYLC6%4.720.36%
PowerShares Nasdaq 100QQQLC6%7.433.86%
WisdomTree MidCap EarningsEZMMC10%4.329.710%
WisdomTree SmallCap EarningsEESSC10%1.624.910%
PowerShares Intl Dividend AchieversPIDIntl10%6.722.210%
iShares MSCI Emerging Mkt Min Vol IndexEEMVEE6%6.38.06%
iShares Dow Jones US Real EstateIYRRE6%7.012.36%
GreenHaven Continuous Commodity IndexGCCMF6%(0.9)8.36%
Portfolio Return / Value100%3.213.8100%

Mutual Fund Portfolios July 2014

Here are our favorite Mutual Funds Investment Portfolios for July 2014.

Fund Name  Allocation% ReturnAllocation
No Load Mutual Fund PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Money Market FundMM2%0.00.12%
BlackRock Low Duration Bond **BLDAXSTB4%0.93.04%
Managers Intermediate Duration GovtMGIDXIGB4%2.85.74%
American Century Short Dur Infl Prot BondAPOIXIPB4%1.21.94%
Metropolitan West Total Return BondMWTRXITB4%2.15.74%
Metropolitan West High Yield BondMWHYXHYB4%2.09.74%
SEIX Floating Rate High Income **SAMBXFRB4%1.15.34%
Dreyfus International Bond **DIBAXGB6%2.56.96%
Ashmore Emerging Markets Corp Debt **ECDAXEB4%4.18.84%
BlackRock Global Long/Short Credit **BGCAXL/S B4%1.14.94%
FMI Large Cap*FMIHXLCC3%5.823.13%
RidgeWorth Large Cap Value EquitySTVTXLCV3%5.425.73%
Scout Mid CapUMBMXMCC3%2.325.83%
Artisan Mid Cap Value *ARTQXMCV3%2.821.03%
Hodges Small CapHDPSXSCG3%7.433.43%
ASTON/Silvercrest Small CapASCTXSCV3%2.723.23%
Westcore Micro Cap OpportunityWTMIXMIC2%(0.2)25.22%
Scout InternationalUMBWXIntl4%3.414.34%
Harding Loevner Intl Small CompanyHLMSXIntl4%3.025.84%
Driehaus Emerging Markets GrowthDREGXEE4%4.212.44%
Wasatch Frontier Emerging Small CountriesWAFMXEE2%3.813.32%
Neuberger Berman Real EstateNBRFXRE6%6.612.36%
Invesco Balanced-Risk Allocation**ABRZXHdg4%5.012.34%
Merger FundMERFXHdg4%2.46.34%
MainStay Marketfield*MFLDXL/S E4%(1.7)4.94%
Wasatch Long/ShortFMLSXL/S E4%3.813.94%
AQR Managed Futures StrategyAQMNXMF4%0.80.14%
Portfolio Return / Value100%2.911.9100%
Fidelity Investments PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Cash ReservesFDRXXMM2%0.00.12%
Limited Term BondFJRLXSTB6%1.13.46%
Intermediate GovernmentFSTGXIGB6%1.12.06%
Strategic Real ReturnFSRRXIPB6%2.47.46%
Total BondFTBFXITB6%2.15.76%
High IncomeSPHIXHYB6%1.810.36%
Floating Rate High IncomeFFRHXFRB6%1.14.76%
New Markets IncomeFNMIXEMB6%6.512.16%
Mega Cap StockFGRTXLCG6%4.924.26%
ContrafundFCNTXLCG6%3.925.76%
Low Priced StockFLPSXMCC10%2.822.210%
Small Cap Discovery*FSCRXSCC10%3.523.310%
International GrowthFIGFXIntl8%3.219.48%
International Small CapFISMXISC8%3.325.58%
Real Estate IncomeFRIFXRE8%3.89.88%
Portfolio Return / Value100%2.914.7100%
Easy Mutual Fund PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Money Market FundMM2%3.20.12%
Baird Short-Term BondBSBSXSTB10%0.72.310%
American Century Short Dur Infl Prot BondAPOIXIPB6%1.21.96%
Metropolitan West Total Return BondMWTRXITB10%2.15.710%
Loomis Sayles Global BondLSGLXGB10%2.46.910%
ASTON/Montag & Caldwell GrowthMCGFXLC10%4.818.910%
Scout Mid CapUMBMXMC10%2.325.810%
ASTON/Silvercrest Small CapASCTXSC10%2.723.210%
Scout InternationalUMBWXIntl10%3.414.310%
Harding Loevner Emerging MarketsHLEMXEE6%6.619.16%
Neuberger Berman Real EstateNBRFXRE6%6.612.36%
Wasatch Long/ShortFMLSXL/S10%3.813.910%
Portfolio Return / Value100%3.113.1100%
Fidelity NTF Mutual Fund PortfolioTickerClass4/1/20141 Mo1 Yr7/1/2014
Money Market Fund (Cash Reserves)FDRXXMM2%0.04,9062%
BlackRock Low Duration Bond **BLDAXSTB4%0.98,3844%
Fidelity Intermediate Government IncFSTGXIGB4%1.18,5594%
American Century Short Dur Infl Prot BondAPOIXIPB4%1.28,0934%
Metropolitan West Total Return BondMWTRXITB4%2.18,3574%
Metropolitan West High Yield BondMWHYXHYB4%2.09,8254%
Fidelity Floating Rate High IncomeFFRHXFRB4%1.19,0684%
Dreyfus International Bond **DIBAXGB6%2.511,8816%
Fidelity New Markets IncomeFNMIXEB4%6.510,5564%
BlackRock Global Long/Short Credit **BGCAXL/S B4%1.18,3124%
FMI Large Cap*FMIHXLCC2%5.86,1942%
Fidelity ContrafundFCNTXLCG2%3.96,2322%
RidgeWorth Large Cap Value EquitySTVTXLCV2%5.45,6772%
Scout Mid CapUMBMXMCC2%2.36,2222%
Baird MidCap InvBMDSXMCG2%1.05,0932%
Artisan Mid Cap Value *ARTQXMCV2%2.86,1892%
Fidelity Small Cap Discovery *FSCRXSCC2%3.56,6492%
Rice Hall James Small CapRHJMXSCG2%1.45,8802%
ASTON/Silvercrest Small CapASCTXSCV2%2.75,0912%
Westcore Micro Cap OpportunityWTMIXMIC2%(0.2)6,1552%
Scout InternationalUMBWXIntl4%3.49,8174%
Harding Loevner Intl Small CompanyHLMSXIntl4%3.012,3454%
Driehaus Emerging Markets GrowthDREGXEE4%4.28,3894%
Wasatch Frontier Emerging Small CountriesWAFMXEE2%3.84,6652%
Neuberger Berman Real EstateNBRFXRE6%6.613,9246%
Merger FundMERFXHdg4%2.47,3644%
MainStay Marketfield*MFLDXL/S E6%(1.7)15,5776%
Wasatch Long/ShortFMLSXL/S E6%3.815,7616%
AQR Managed Futures StrategyAQMNXMF4%0.87,3744%
Portfolio Return / Value100%2.5242,541100%
* Funds Closed to New Investors. If you do not already own this fund, you may choose another fund in the same category for your portfolio.
** Loaded funds that are available from some brokers, usually Schwab and sometimes Fidelity, without a load fee.

 

Asset Allocation for 3rd Quarter 2014

There are no changes to our Insightful Asset Allocation targets for this quarter, but we have made some adjustments to a few of our model portfolios including our Fidelity Investments Model Portfolio, our Fidelity NTF Portfolio, and our ETF and Mutual Fund Portfolio. We have also made several changes to the Mutual Funds we are using in some of our model portfolios. In some cases this was due to fund closings while in other cases it was because funds were no longer available at multiple brokerages.

We are making several changes to our Mutual Fund list with Fidelity Strategic Real Return (FSRRX) replacing Fidelity Inflation-Protected Bond (FINPX) because it is a more diversified approach to inflation protection. Baird MidCap (BMDSX) is replacing Neuberger Berman Genesis (NBGNX) which has too many small cap stocks in its portfolio to really be considered a Mid Cap fund.

Additions to our Mutual Fund list are Metropolitan West Low Duration Bond (MWLDX), Arbitrage Event-Driven (AEDFX), Maingate MLP (AMLPX), and Eagle MLP Strategy (EGLAX).

Asset Allocation July 2014

Mutual Fund, ETF, and Financial Markets Update July 2014

After a banner year for stocks in 2013, the talking heads on CNBC have not reached a consensus on which direction the financial markets are headed. As a result, the numbers for the first half of 2014 look pretty normal as stocks are up 6.9% and bonds up gained 3.9%. While it paid better to be a value investor because you would have made 8% vs. the 6% growth investors made so far this year, the real winners were invested in Mid Cap Value stocks which got almost whole year’s worth of returns in half the time with an 11.1% return. International stocks have had a fairly normal start to the year too, gaining 5.8%, while Emerging Market equities are finally heading in the right direction after adding 6.3%.

The big surprise in the first half of 2014 was the fact that interest rates actually fell, helping long term Treasury Bonds gain 12.1%. In turn, lower interest rates proved to be a nice boost to REITs, which have been the big winner so far in 2014 with a gain of 17.7%.

Investment Returns as of June 2014

Investment Returns as of June 2014

The rebound in Emerging Markets was included the bond marekt with Fidelity New Markets Income (FNMIX) leading the way with a gain of 10.4% in the first half of 2014. More strong performers were Loomis Sayles Core Plus Bond (NERYX) which gained 6.8%, Fidelity Inflation-Protected Bond (FINPX) which added 5.7%, Dreyfus International Bond (DIBAX) which was up 5.4% and Fidelity High Income (SPHIX) which returned 4.3%.

AMG SouthernSun Small Cap (SSSFX) topped our equity funds with a gain of 11.3%, followed by American Century Mid Cap Value (ACMVX) which picked up 10.2% and FMI Large Cap (FMIHX) which added 8.4%. Overseas, Lazard Emerging Markets Equity (LZOEX) recovered the most so far this year with a gain of 9.1%, while Harding Loevner International Small Company (HLMSX) with a gain of 6.9% and Matthews Asia Dividend (MAPIX) with a gain of 5.3% were also strong performers.

The real winners so far in 2014 have been specialized funds with Fidelity Real Estate Investment (FRESX) leading the way with a 17.4% gain and Oppenheimer SteelPath MLP Alpha (MLPAX) picking up 14.9%.

Returns for the first half were fairly similar for ETFs. PowerShares Emerging Markets Sovereign Debt (PCY) was our leading Bond ETF with a gain of 10.5%, followed by SPDR DB International Govt Inflation-Protected Bond (WIP) with a gain of 7.4% and SPDR Barclays High Yield Bond (JNK) which picked up 5.4%.

WisdomTree MidCap Dividend (DON) with a gain of 10.7% was our leading US stock ETF, followed by Guggenheim S&P 500 Equal Weight (RSP) which added 8.5% and iShares S&P SmallCap 600 Value Index (IJS) which returned 4.5%. Overseas iShares MSCI Canada Index (EWC) was the leading developed country ETF with a gain of 11.3% while iShares MSCI Brazil Index (EWZ) may have received a boost from hosting the World Cup to gain 9.1% so far in 2014.

There was quite a contrast at the sector level of the market as SPDR S&P Biotech (XBI) gained 19.0% and Utilities Select Sector SPDR (XLU) rose 18.5%. On the other had SPDR S&P Retail (XRT) actually lost 1.0% in the first half of the year.

Our Favorite Mutual Funds, Favorite ETFs, Mutual Fund Portfolios, ETF Investment Portfolios, and Favorite Fidelity Funds have been updated through June 2014.