ETF Returns {Total Return Strategies}

Above, and again using the performance return capabilities from Stockcharts.com, are various ETFs we cover in our Total Return strategies.  Again you can double-click on the chart to make it larger.  The application shows that that an equal weighted portfolio of just these ETFs held for the entire year returned 14.00% in 2017.  This group under performed the broader market averages in 2017 largely for two reasons.  The first had to do with this group having to fight rising interest rates all last year.  Rising interest rates, in general,  makes dividend paying equity instruments less attractive as they have to compete with the higher interest coupons on risk free investments.  The second has to do with the significant under performance of REITS-Real Estate Investment Trusts.  REITS had not only rising interest rates in their faces but also the fallout from the decimation of the retail world as online shopping took off in a significant manner in the last two years. Many REITs are mall based and the implosion of retail has had a significant effect on shopping mall capacity.  These factors have a higher probability of continuing in 2018.

These returns were lower than other sectors and strategies last year, but a 14% return on investments where the dividend payout will likely continue to grow is nothing to turn up one's nose at.  This group also generally has higher defensive characteristics then more volatile sectors of the markets in a correction as well.   In any diversified portfolio there's going to be one sector or strategy that will bring up the rear and in 2017 it was the dividend payers turn to follow the pack.  This group has been one of the best performing prior to this last year.

*Performance data comes from the performance chart utility developed by Stockcharts.com.  While we assume their data is correct, we make no claims and cannot be held responsible for the accuracy of these results.

**Long various indices shown above in both client and personal accounts.  Please note these positions can change at any time without notice on this blog or on any other form of communication including written and electronic.