Model Portfolio Allocation Changes- This Week
Exit the Real Estate Sector
The Performance Xtender model has triggered a sale of the remaining 10% Real Estate sector fund allocation. The sharp sell-off in REIT stocks this week was precipitated by an equally sharp move up in interest rates after new inflation concerns were triggered by a US government report on the growth in average hourly earnings.
The liquidation of this sector fund position that was initiated at the end of July will allow the Model Portfolio to lock in a gain of about 8%.
Changes in the Performance Xtender: The model is selling the previous 10% allocation in a Real Estate sector fund and redeploying the proceeds into a Large-cap stock fund. This change will increase the Large-cap stock allocation up to a fully invested 100% position.
Model Portfolio: Performance 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 | |
| SELL Real Estate | 10% | RYHRX | 7% | REPIX | 10% | IYR |
| Increase LargeCaps | 10% | RYZAX | 7% | BLPIX | 10% | SPY |
| Corporate Bonds, or Money Market |
ProFunds investors should liquidate their 3% Money Market funds allocation in order to increase BLPIX to a 100% allocation. | |||||
| New Model Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| LargeCap Stock Fund | 100% | RYZAX | 100% | BLPIX | 100% | SPY |
| Corporate Bonds, or Money Market |
Money Market Funds: 0% | |||||
'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 | |
| No Changes | - | - | - | - | - | - |
| Corporate Bonds, or Money Market |
- | |||||
| New Model Portfolio Allocations | Rydex Funds | ProFunds | ETFs | |||
|---|---|---|---|---|---|---|
| Allocation | Ticker | Allocation | Ticker | Allocation | Ticker | |
| Lev'd LargeCaps | 100% | RYTNX | 100% | ULPIX | 200% | SPY |
| Corporate Bonds, or Money Market |
ETF Investors: Note that the SPY position should be leveraged 2 to 1. | |||||
