Model Portfolio Allocation Changes- This Week
Models Reduce Stock Market Allocation
The model portfolios both triggered a reduction in exposure to the stock market after the severe sell-off last week.
Portfolio Changes in the Performance Xtender: This model is selling 40% of its previous 100% allocation in Mid Cap stocks. Proceeds of the sale go to money market.
Portfolio Changes in the Max Xtender: This model is reducing leverage by selling one-half of its previous position in a leveraged Mid Cap fund and placing the proceeds into a non-leveraged Mid Cap fund. The effect of this change will be to reduce the leverage factor from 2 to 1 to 1.5 to 1.
Model Portfolio: Performance Xtender
Model Portfolio: Max Xtender
New Model Portfolio Allocations
Model Portfolio Details
The tables below provide the percentage allocation details and mutual fund ticker symbols for investors following the Model Portfolios by using funds from either of the Rydex Investments or ProFunds mutual fund companies -- or alternatively, investors using exchange traded funds (ETFs).
'Performance Xtender'
(A model portfolio that invests selectively in stock market index funds, plus certain market sectors such as Energy, Gold and Real Estate, and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. The allocation mix is designed to beat the market significantly during both bull and bear markets with only limited risk of volatility.)
| Model Portfolio Changes for this week | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| REDUCE MidCap Fund | 40% | RYAVX | 40% | MDPIX | 40% | MDY |
| Corporate Bonds, or Money Market |
Use proceeds to create a new 40% allocation in a money market fund . | |||||
| New Model Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| Mid Cap Stock Fund | 60% | RYAVX | 60% | MDPIX | 60% | MDY |
| Corporate Bonds, or Money Market |
40% Money Market Fund. | |||||
'Max Xtender'
(A model portfolio that invests selectively in stock market index funds and in an Inverse Fund ("Bear Fund"), depending on current market trends for each type of investment. During strong market trends ... either bullish or bearish ... the model uses up to 2-to-1 leverage to magnify returns. The allocation mix is designed to beat the market substantially during both bull and bear markets but results in a relatively high risk of volatility.)
| Model Portfolio Changes for this week | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| SELL Lev'd MidCap | 50% | RYTNX | 50% | UMPIX | 50% | MDY |
| BUY UnLev'd MidCap | 50% | RYAVX | 50% | MDPIX | - | - |
| Corporate Bonds, or Money Market |
Rydex does not have a leveraged MidCap fund so we have substituted RYTNX, a leveraged LargeCap Fund. ETF investors should sell enough MDY to be leveraged 1.5 to 1. | |||||
| New Model Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| Lev'd MidCap Fund | 50% | RYTNX | 50% | UMPIX | 150% | MDY |
| UnLev'd Mid Caps | 50% | RYAVX | 50% | MDPIX | - | - |
| Corporate Bonds, or Money Market |
ETF Investors: Note that the MDY position is margined 1.5 to 1. |
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