Best ETF Portfolio

July 23, 2019

Economists describe countries as having life stages. Emerging markets benefit from an abundance of cheap labor during a period of manufacturing growth, then move from building things to a service-based economy. Hong Kong, for example, was a center for manufacturing and progressed into banking and services.

Countries become wealthier with time because of technological advancement. Provided that investors or shareholders are treated equitably, they join the ride to wealth. The word equities is based on the concept of equal treatment.

To take advantage of the wealth growth, first, find a country which treats shareholders well, then look at their technology companies. Currently, the most dynamic area in the world happens to be the US. Next, discover areas of the market which tend to outperform: technology, consumer discretionary and health care. Choose the sectors of these three which is least loved or unpopular. Companies which are unpopular correlate to better returns.

The three ETFs are:

• Technology QQQ
• Consumer Discretionary XLY
• Health care XLV

The biotechnology sector IBB should also be included as an advanced technology focus.

Historically, these ETFs have outperformed the SPY ETF.