Here’s an update of the Fidelity ETF model + QQQ and a reshuffling of the other no-fee ETF components. The AM risk management algorithm has been refined a bit and, if compared with the initial Fidelity post, a definite smoothing of the Mosaic equity lines can be seen. The APR returns on the actively managed model have also improved although it must be noted that over the past 12 weeks AM has only delivered 1%, but still fractionally better than SPY. A closer exam of the 12 week SPY vs AM model shows AM has been in cash for the past 10 of 12 weeks while SPY has had a 5% run up and pullback to its present position.
Daniel commented that Fidelity has restrictions on frequent trading of the no-fee ETFs and anyone considering using such an approach should clarify this issue with Fidelity before embarking on a program like AM which MAY require EOD re-balancing. I must emphasis the word “MAY” because that’s exactly what it means. For the last 10 weeks AM has been in cash = no trades, but when the safe momentum signal kicks in and AM starts to move, then daily re-balancing MAY be required. This is not to parse words but simply to clarify the nuance of “MAY” when considering a Fidelity no-fee program. Nuff said.
