I am making one change to the four-ETF Undiscovered model. I am selling the Direxion Daily S&P 500 Bear 1X Shares (SPDN), a 20% position, and replacing it with the ALPS Medical Breakthroughs ETF (SBIO) in the 20% portfolio slot.
SPDN, which returns the inverse of the S&P 500, is up 8% since late February.
This is a great example of how “defense can become offense” in a portfolio. The market fell, but we profited from that.
The replacement buy, SBIO, is a biotech-focused ETF. In a market starved for good equity industry ideas, botech’s technical pattern gives us a better chance to “win” in this extremely volatile environment.
We are leaving the Invesco S&P SmallCap Energy ETF (PSCE) in place, despite a loss, as we believe energy is in the process of rebounding.
As always, if market conditions change, we will make more shifts in the portfolio.
|Invesco Dow Jones Industrial Average Dividend ETF||DJD||40%||4/8/22||46.35||43.07||0.00||Quarterly||-7%||0.4|
|AGFiQ US Market Neutral Anti-Beta Fund||BTAL||30%||4/26/22||19.86||20.83||0.00||-||5%||0.3|
|ALPS Medical Breakthroughs ETF||SBIO||20%||NEW||--||28.44||0.00||Quarterly||--%||0.2|
|Invesco S&P SmallCap Energy ETF||PSCE||10%||3/28/22||10.05||9.33||0.00||Quarterly||-7%||0.1|