- Exchange-traded funds are revolutionizing the way people invest by opening doors to new and unique strategies.
- Today, Nicholas Vardy explains his four key ETF trading strategies and how he applies them in his Oxford Wealth Accelerator service.
As you may already know, August has been an exciting month for me and for The Oxford Club.
After many months of preparation, we launched a new portfolio in Oxford Wealth Accelerator – my exchange-traded fund (ETF) investing service – on August 2.
Today, I want to give you a refresher on Oxford Wealth Accelerator and what you can expect as a subscriber.
The basic Oxford Wealth Accelerator trading service consists of three portfolios:
- The Tactical Portfolio focuses on generating quick, short-term gains. In this portfolio, I recommend specialized, leveraged – and even inverse – ETFs to profit from short-term movements in a wide range of assets, including stocks, bonds, commodities and currencies.
- The Strategic Portfolio consists of 10 distinct long-term investment strategies. Each of these strategies has a track record of beating the market for many years.
- The new Income Portfolio invests in a diverse selection of income strategies. By not relying on a single source of income, you can earn much more – certainly a much higher income than you would get by, say, investing in an S&P 500 index fund.
Finally, if you are a lifetime subscriber or a Member of The Oxford Club’s Chairman’s Circle, you will have exclusive access to a fourth portfolio, the Endowment Portfolio.
As a subscriber to Oxford Wealth Accelerator, you will receive a weekly update on each of these portfolios, as well as any new “Buy” and “Sell” recommendations.
Now let’s review each of the Oxford Wealth Accelerator portfolios in more detail.
The Tactical Portfolio
As investors, we are always told to focus on the long term. And yet, it’s today’s short-term financial market trends that capture the headlines.
Why is that?
Because if you catch a short-term trend at the right time, you can generate a year’s worth of gains in a matter of days. You can almost hear the cash register ring.
The good news is there is a wide range of ETFs that allow you to profit from these short-term market moves – whether the markets are going up or down.
Do you expect gold miners will continue to recover? You can place a 3X leveraged bet on that trend continuing. We recently booked a quick 30% gain in a matter of weeks on just such a bounce.
Do you love to play bitcoin’s ups and downs? We do too. And we booked 30% gains in this cryptocurrency twice in the past three months.
Do you believe in the recovery of the Brazilian stock market following the election of President Jair Bolsonaro – the “Trump of the Tropics”? Well, I’ve identified an ETF that will allow you to profit from that – even on a triple-leveraged basis.
How can I follow so many different kinds of markets represented by hundreds of different ETFs? Through a system I call the “Money Matrix.”
The Money Matrix scans hundreds of ETFs after the close of each trading day – and identifies those with the strongest short-, medium- and long-term momentum. And it recommends only those that rank as 100% buys across all categories.
The Oxford Wealth Accelerator Tactical Portfolio offers new recommendations two to four times per month for a total of about 40 new recommendations per year.
The Strategic Portfolio
As an investor, you’ve probably heard about a wide range of market-beating investment strategies.
Some strategies focus on momentum – betting on the hot themes of the day. Others focus on value, preferring to buy stocks at bargain-basement prices. Still others focus on high-quality, dividend-paying stocks like the “Dividend Aristocrats.”
But here’s the reality: First, it’s tough to implement these strategies consistently. Second, although each of these strategies has a strong long-term track record… No single strategy works all the time.
Luckily there are now more than 500 “smart beta” ETFs that allow you to invest in just these kinds of strategies.
And the Oxford Wealth Accelerator Strategic Portfolio packages the 10 or so market-beating investment strategies that I believe will make the most money under current market conditions.
This portfolio offers about three or four new recommendations each year.
The Income Portfolio
After surveying our first Oxford Wealth Accelerator subscribers, we realized that we had overlooked a critical ETF investment strategy. We learned that many of you also wanted an investment portfolio that generated a steady source of income.
The conventional approach to income investing – buying high-dividend stocks – overlooks the wide range of other ways to generate investment income. Just consider some of the many ways to generate income:
- Real estate investment trusts
- Municipal bonds
- Business development companies
- Master limited partnerships
- High-yield bonds
- U.S. dollar-denominated sovereign debt
- Preferred stocks
- Covered call option strategies.
Assemble a portfolio of these diverse income-generating ETFs, and you are well on your way to generating a rock-solid source of portfolio income.
The current Oxford Wealth Accelerator Income Portfolio yields well over 6%. That’s more than triple the current 1.85% yield on the S&P 500.
The Endowment Portfolio
Finally, we have an exclusive portfolio for lifetime subscribers to Oxford Wealth Accelerator: the Endowment Portfolio. Its investment strategy is straightforward: Replicate the asset allocation strategy of the Yale University endowment using ETFs.
Here’s why: David Swensen, the head of the Yale endowment, is widely considered the leader among all top university endowments. Swensen was the first to apply modern portfolio theory to massive multibillion-dollar university endowments.
A fundamental insight of modern portfolio theory is that asset allocation explains more than 90% of a portfolio’s investment returns. That means the decision to invest in the right asset classes matters more than picking the right stocks. (This is the same thinking that drives Alexander Green’s Gone Fishin’ Portfolio in The Oxford Communiqué.)
Choosing from among 2,000 ETFs trading on U.S. markets, the Endowment Portfolio invests in asset classes that go far beyond traditional U.S. stocks and bonds.
Surprisingly, the Endowment Portfolio’s allocation to U.S. stocks for 2019 is a low 3%. This small allocation is a far cry from the traditional 60% U.S. stock, 40% U.S. bond portfolio.
We will rebalance the Endowment Portfolio once a year to reflect the annual changes in Yale’s own asset allocation strategy.
So there you have it.
After this quick review of Oxford Wealth Accelerator, I hope you’ll agree that it is the single most comprehensive wealth-building solution The Oxford Club offers.
Click here to view a special presentation and subscribe to Oxford Wealth Accelerator.
Interested in hearing more from Nicholas? Follow @NickVardy on Twitter.