Ivy Portfolio for March

Near the end of January I added a free investment tool to Scott’s Investments, a daily Ivy Portfolio spreadsheet.  This tool uses Google Docs and Yahoo Finance to track the 10 month moving average signals for two of the 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.

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My 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 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.

In February I made improvements to the spreadsheet. The percentage each ETF within the Ivy 10 and Ivy 5 Portfolio is above or below the current 10 month simple moving average is now provided. I also added additional price signals based on unadjusted dividend/split data from Yahoo.

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.

There is a link to the spreadsheet at the top of the site (“Ivy Portfolio”); however, if you want a wider view of the spreadsheet click on the link “Ivy Portfolios” on the right hand column of the site.

Please note: I do not track these portfolios as hypothetical portfolios like I do with other portfolios on the site. However, I will periodically post backtest results on the strategy using ETFReplay.com and I plan on updating backtests in the next few days. Also, the signals update daily but this does not mean I endorse checking the signals each day. It simply gives the spreadsheet more versatility to have the signals update daily. All data is provided on an as-is basis, please do your own research before making any investment.

The current signals based on February’s closing prices are below. The first table is based on adjusted historical data and the second table is based on unadjusted data (click the image to enlarge):