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.
| Undiscovered | Symbol | Allocation | Date Bought | Price Bought | Price on 6/27/22 | Dividends | Div Freq. | Gain/ Loss % | Allocation |
| 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 |