Ivy Portfolio February Update

Scott’s Investments provides a daily Ivy Portfolio spreadsheet to track the 10 month moving average signals for two portfolios listed in Mebane Faber’s book The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets. Faber discusses 5, 10, and 20 security portfolios that have trading signals based on long-term moving averages.

The Ivy Portfolio spreadsheet tracks the 5 and 10 ETF Portfolios listed in Faber’s book. When a security is trading below its 10 month simple moving average, the position is listed as “Cash”. When the security is trading above its 10 month simple moving average the positions is listed as “Invested”.

The spreadsheet’s signals update once daily (typically in the late evening) using dividend/split adjusted closing price from Yahoo Finance. The 10 month simple moving average is based on the most recent 10 months including the current month’s most recent daily closing price.  Even though the signals update daily, it is not an endorsement to check signals daily or trade based on daily updates. It simply gives the spreadsheet more versatility for users to check at his or her leisure.

The page also displays the percentage each ETF within the Ivy 10 and Ivy 5 Portfolio is above or below the current 10 month simple moving average, using both adjusted and unadjusted data. If an ETF has paid a dividend or split within the past 10 months, then when comparing the adjusted/unadjusted data you will see differences in the percent an ETF is above/below the 10 month SMA. This could also potentially impact whether an ETF is above or below its 10 month SMA. Regardless of whether you prefer the adjusted or unadjusted data, it is important to remain consistent in your approach. My preference is to use adjusted data when evaluating signals.

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The current signals based on January’s adjusted closing prices are below. The spreadsheet also provides quarterly, half year, and yearly return data courtesy of Finviz:

Ivy portfolio

I also provide a “Commission-Free” Ivy Portfolio spreadsheet as an added bonus. This document tracks the 10 month moving averages for four different portfolios designed for TD Ameritrade, Fidelity, Charles Schwab, and Vanguard commission-free ETF offers.

Not all ETFs in each portfolio are commission free, as each broker limits the selection of commission-free ETFs and viable ETFs may not exist in each asset class. Other restrictions and limitations may apply depending on each broker.

Below are the 10 month moving average signals (using adjusted price data) for the commission-free portfolios:




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Snow Day Investment Reads

Many of you are likely enjoying a snow day today.  Below are some investments readings to keep you occupied:

The Difference Between Good and Bad Markets & Setting Realistic Investing Expectations – Pragmatic Capitalism

And the Winner Is….  – Dual Momentum

Humble Pie Prevents 99.8% Drawdowns – Alpha Architect

Looking Back at James Montier’s “Perfect” Value Investors – Advisor Perspectives

Doing Nothing is a Decision & Maybe You Shouldn’t Do That- A Wealth of Common Sense

10 Myths About Momentum Investing - Quant Investing

From the Journal of Indexes (longer, heavy reads):

Getting Smarter About Commodities 
Diversification-Weighted Perfomance Evaluation


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How to invest a lump sum
Better Investing Members Buy A Few Underperforming Stocks
Why Jack Bogle Is Wrong On Foreign Investing
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Investment Resources for Individuals