QE3 Is Here, What Do We Wait For Next?

by on September 15, 2012 | ETFs Mentioned:

Investors finally got what they wanted as the Fed confirmed the much-anticipated QE3 on Thursday. Bullish euphoria quickly spread all over the globe as investors cheered on Chairman Bernanke’s announcement of further stimulus; with the ECB moving forward with its own stimulus initiative, policymakers on both fronts have made their commitment to ensuring financial stability and ensuring economic growth quite clear. Moving forward, markets will once again rely on fundamental data releases to keep prices in check as stimulus hopes have been fulfilled so to say [see also 7 Simple & Cheap All-ETF Model Portfolios].

Actionable ETF Trade Ideas

Last Week’s Actionable ETF Ideas
Ticker Position Week Performance
DXJ

Long

+3.9%
XLU

Long

-0.2%
TLT

Long

-1.4%

Our picks from Monday’s Insider posted a solid performance as news of QE3 helped lift stocks higher across the board. Below, we highlight how our trade ideas fared during the week [sign up for a free trial of ETFdb Pro to get actionable ETF ideas every Monday, as well as access to more than 45 all-ETF model portfolios].

Trade #1 Long DXJ: Up 3.9%

This recommendation dragged sideways for the first two days, although encouraging developments in Europe propelled it higher on Wednesday. This ETF was able to hold onto its gap and even extend its gains on the week as Thursday’s announcement of QE3 brought back the bulls to Wall Street. DXJ stuck to its uptrend and charged higher into the close on Friday leaving us with a hefty profit for the week. 

Trade #2 Long XLU: Down 0.2%

This recommendation was lackluster as increasing risk appetites ended up hurting demand for traditionally safer sectors like utilities. The German court ruling passing the proposed European Stability Mechanism coupled with news of QE3 on the homefront kept confidence levels elevated all week, which translated into gains for risky assets, leaving this recommendation in the dust. XLU traded sideways for most of the week, closing just below Monday’s opening price on Friday and leaving us with a small frustrating loss. 

Trade #3 Long TLT: Down 1.4%

This fundamentally defensive recommendation turned sour as bullish pressures permeated Wall Street. Demand for safe haven Treasuries was quick to decline as the QE3 announcement paved the way higher for riskier assets across the board. We stuck to our rules and sold out at $122 a share as we had outlined in Monday’s recommendation; despite the loss on the week, our prudent risk management allowed us to cut our losses seeing as how TLT went onto decline below $119 a share. 

ETFdb Portfolios

Retirement ETFdb Portfolios

Our retirement portfolios ended up in green territory across the board despite weakness in the fixed income market. Not surprisingly, our Aggressive Portfolio was able to lead the way higher on the week while our Low Volatility Portfolio came in last place from a performance perspective.

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
5 Years Til Retirement Portfolio 0.07% 0.41% 4.15% 5.63% 11.45% 30.31% n/a
10 Years Til Retirement Portfolio 0.14% 0.69% 5.26% 6.77% 13.51% 32.85% 85.66%
20 Years Til Retirement Portfolio 0.12% 0.65% 5.88% 7.75% 14.99% 36.82% 98.47%
30 Years Til Retirement Portfolio 0.15% 0.65% 6.27% 7.54% 15.87% 38.76% 107.10%
Aggressive Portfolio 0.21% 0.58% 6.31% 6.86% 13.82% 26.02% n/a
Cheapskate Portfolio 0.62% 1.57% 5.70% 8.54% 15.38% n/a n/a
Low Volatility Portfolio 0.05% 0.82% 3.77% 5.09% 7.49% n/a n/a
Moderate Portfolio 0.16% 0.42% 4.57% 6.37% 11.51% 26.70% n/a
Ready To Retire ETFdb Portfolio 0.11% 0.59% 3.82% 6.23% 9.41% 23.38% 63.39%
As Of 07-25-2014
Regional ETFdb Portfolios

“Risk On” was this week’s theme and equity markets around the globe edged higher. Our Euro Free Europe Portfolio soared ahead by nearly four points on the week as encouraging developments helped to restore investors’ confidence in the otherwise debt burdened currency bloc. 

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Africa-Centric Portfolio 0.73% 3.01% 2.12% 9.82% 19.83% 17.25% n/a
Asia-Centric ETFdb Portfolio 0.77% 2.00% 7.89% 7.25% 11.21% 8.86% n/a
BRIC-or-Bust ETFdb Portfolio 0.42% 0.42% 10.04% 6.36% 11.10% -13.14% n/a
Easy-As-ABC ETFdb Portfolio -0.06% 0.01% 4.11% 4.35% -1.01% n/a n/a
Emerging & Frontier Markets ETFdb Portfolio 0.72% 2.11% 7.83% 8.50% 9.80% 2.21% n/a
Euro Free Europe Portfolio -0.11% -1.37% 3.58% 0.09% 7.67% 13.93% n/a
Ex-Europe ETFdb Portfolio 0.31% 1.29% 5.53% 7.64% 12.55% 25.60% 71.25%
Ex-U.S. Portfolio 0.43% 1.03% 4.92% 6.01% 13.23% 15.19% 50.11%
Global Titans ETFdb Portfolio 0.14% -0.26% 2.95% 3.65% 11.58% 25.80% n/a
LatAm Centric ETFdb Portfolio 0.63% 1.95% 7.51% 4.47% 4.21% n/a n/a
As Of 07-25-2014
Themed ETFdb Portfolios

The Fed announcement of QE3 caused for a host of inflationary worries to resurface, sparking a massive rally for the precious yellow metal. As gold futures and mining equities surged higher throughout the week, our GLD-Free Gold Bug ETFdb Portfolio was able to clinch impressive gains and come into first place from a performance perspective. 

ETFdb Portfolio 1 Week 4 Week 13 Week YTD 1 Year 3 Year 5 Year
Actively-Managed ETF Portfolio 0.43% 1.50% 4.34% 4.58% 7.66% n/a n/a
2012 ETFdb Portfolio 0.24% -0.10% 6.91% 8.23% 16.41% n/a n/a
AlphaDEX ETFdb Portfolio 0.35% 0.29% 4.89% 4.94% 11.56% 20.45% n/a
Alpha Seeker Portfolio 2.0 -0.36% 0.38% 5.10% 6.68% 11.80% 27.53% n/a
Baby Boomers ETFdb Portfolio 0.08% -0.37% 7.03% 7.81% 21.61% 67.44% n/a
Ben Graham 50/50 Portfolio 0.06% 0.74% 4.62% 6.51% 10.06% n/a n/a
Better-Than-AGG Total Bond Market ETFdb Portfolio 0.25% 0.30% 2.13% 5.07% 5.30% 10.40% n/a
Black Swan Hyperinflation Portfolio 0.04% -1.04% 1.44% 6.18% 3.37% -13.10% n/a
Commodity Guru ETFdb Portfolio 0.40% -0.50% 1.84% 4.53% 6.36% -2.74% n/a
Cheapskate Hedge Fund ETFdb Portfolio -0.20% 0.83% 2.07% 2.26% 2.97% -2.96% n/a
Energy Bull ETFdb Portfolio 0.51% -1.27% 4.38% 8.04% 15.13% 15.09% n/a
Equal Weight ETFdb Portfolio 0.38% 0.38% 4.60% 6.40% 11.27% n/a n/a
Financials Free ETFdb Portfolio -0.03% -0.25% 3.07% 7.00% 14.17% 31.05% 81.14%
Futures Free Commodity ETFdb Portfolio 0.40% 0.60% 3.25% 5.28% 6.26% -18.68% n/a
GLD-Free Gold Bug ETFdb Portfolio -0.80% 0.90% 5.40% 20.34% 2.37% -32.81% n/a
Greedy When Others Are Fearful ETFdb Portfolio 0.79% 1.86% 5.04% 9.00% n/a n/a n/a
High-Tax Bracket ETF Portfolio 0.21% 0.25% 4.25% 5.95% 12.22% 24.54% 70.43%
High Tech ETFdb Portfolio 0.96% 1.99% 11.30% 11.32% 23.45% n/a n/a
High Yield ETFdb Portfolio -0.07% 0.05% 4.50% 7.28% 12.76% 38.83% 97.47%
King Dollar ETFdb Portfolio 0.44% 1.25% 4.25% 5.39% 8.84% 22.14% n/a
Kitchen Sink ETFdb Portfolio 0.14% -0.35% 3.00% 4.44% 9.69% 21.81% n/a
Monthly Dividend ETFdb Portfolio -0.08% -0.44% 3.42% 7.62% 11.99% 32.83% n/a
Pure Growth ETFdb Portfolio 0.30% -0.00% 5.78% 5.90% 13.12% n/a n/a
Pure Value ETFdb Portfolio 0.01% -0.30% 4.87% 6.59% 16.05% n/a n/a
RAFI ETFdb Portfolio 0.29% 0.33% 6.02% 5.92% 16.45% 32.40% 96.40%
Simple (But Effective) Safe Haven ETFdb Portfolio -0.30% -1.14% 1.54% 7.65% 9.32% 18.84% 63.56%
Small Cap ETFdb Portfolio 0.07% -0.71% 3.60% 4.61% 10.98% 24.97% n/a
The Sky Is Falling Portfolio 0.45% -0.29% -1.36% 1.15% -0.57% 1.09% n/a
Socially Responsible ETFdb Portfolio 0.11% 0.05% 4.65% 5.28% 10.96% n/a n/a
Risk On ETFdb Portfolio -0.21% 1.06% 8.02% 10.75% 19.26% n/a n/a
Consumer Centric ETFdb Portfolio -0.11% 0.69% 3.33% 4.15% 12.23% n/a n/a
Agri-Bull ETFdb Portfolio 0.05% -1.89% -1.34% 4.83% 8.43% 5.05% n/a
8% Yield ETFdb Portfolio 0.36% -0.16% 4.38% 8.58% 13.49% n/a n/a
Mining Boom ETFdb Portfolio 0.87% 3.43% 9.02% 12.99% 10.84% n/a n/a
2013 ETFdb Portfolio 0.40% 0.18% 4.58% 8.00% 11.94% n/a n/a
As Of 07-25-2014

Disclosure: No positions at time of writing.