The AlphaProfit Sector Investors' Newsletter offers two sector exchange-traded funds (ETFs)
based model portfolios: ETF Core portfolio and ETF Focus portfolio. Sector ETFs offered by Invesco PowerShares, iShares, Market Vectors, SPDRs, Vanguard, WisdomTree and other investment companies are used as building blocks of the model portfolios. The sector ETFs are chosen using AlphaProfit's ValuM Investment Process.
"I am a huge believer in portfolio construction sector by sector."
Roger Nusbaum, Portfolio Manager
Both model portfolios are usually fully invested in equity funds and do not market-time.
The model portfolios pursue capital appreciation; income is secondary. Tax efficiency is considered in periodic repositioning of the investment portfolios.
You can use either or both of the ETF model portfolios depending on the investment objectives of the individual account.
Sector ETF Core Portfolio
Sector ETF Focus Portfolio
Investment Objective
Long-term capital appreciation
Aggressive growth
Portfolio Composition
7 to 8 sector ETFs on average
2 to 4 sector ETFs
Diversification
More diversified
Less diversified
Volatility
Less volatile
More volatile
ETF Holding Period
Most ETFs held 1 year or longer; some held for 6 months
The Sector ETF Core and Focus model portfolios may at times include index funds like SPDR S&P 500 or cash equivalents like money market funds for diversification or capital preservation purposes.
Long-term capital appreciation
