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My ETF Momentum Strategy Performance for August

First off, I notice my email subscriber list is growing. Given my hectic business schedule during the construction season there is little that I can offer at this time of year other than to report my investment performance. I started doing this years ago to put pressure on myself to improve as an investor. Putting your monthly returns online for all to see is usually humbling but it can lead to a focused effort to improve. Please feel free to send me a note to let me know if there is something you want me to discuss on this site that you haven’t found elsewhere.

This is the tenth consecutive month that my ETF strategy has posted a positive return. For the month of August, my strategy returned 0.82% as reported by Collective2.com. The largest holdings remain the same in September as they were in August with the largest allocation to Asian equity ETF’s.

Tactical asset allocation (TAA) investing strategies such as mine tend not to outperform during bull markets. Anyone invested in a truly global ETF passive strategy has enjoyed similar returns to my strategy. During bear markets, TAA strategies perform well as they are designed to move to treasury ETF’s or cash. This inherent design feature results in lower draw downs than any other strategy that has a similar long term return and only trades once per month.

My Gain to Pain Ratio of 3.11 is exceptionally high but it is measured over a period of less than three years so it really doesn’t count.

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