ETF Strategy

Here are the key takeaways from this lesson:

• The ETF strategy combines diversification + momentum, using an “all-weather” mix of assets (SPY, GLD, TLT, DBC, FXE) and a moving average filter to manage risk.
• Portfolio is systematically weighted and rebalanced, fixed allocations (35% equities, 30% bonds, etc.) are reset weekly, with additional changes when momentum signals trigger entries or exits.
• Momentum filter reduces drawdowns, positions are exited when the short-term trend drops below the long-term trend, helping avoid major crashes at the cost of slightly lower returns.
• This is the “stable foundation” of the portfolio, lower returns (~5.5% CAGR) but significantly reduced volatility and drawdowns (~13%), making it the bedrock that supports the full strategy.