For those investors who are either following or implementing the ITA Risk Reduction (ITARR) model, here are the latest results for the following critical ETFs: VTI, IWN, VEU, VWO, VNQ, RWX, TIP, TLT, PCY, DBC, and GTU. Only TLT, DBC, and GTU were priced below their respective 195-Day EMA when checked earlier this morning. The relative positions can change so here is a link you may wish to bookmark. Note that I provide the linkable version.
The portfolios I track are reviewed every 32 days. This keeps me out of trouble on several fronts.
- The wash sale is avoided should a buy or sell go into effect. Since we are outside the 30-day limit, this potential problem is avoided.
- When dealing with commission free ETFs, as many of the above are, we are not subjected to the $19.99 commission fee tacked on should we trade a commission free ETF within the 30-Day limit. This applies to TDAmeritrade clients.
- The 32-day limit rolls the portfolio review throughout the month instead of updating it at the end of the month as done by Faber and Richardson. I think this has advantages as we are avoiding events that may occur at specific times during the month.