SWM ETF portfolio fact sheets, May 2020: equity overweight starts to pay off

Early in May, we moved to a small overweight in equities. The strong market moves lead to gains of 5.51% for our equity ETF portfolio in May, and 4.41% for our growth ETF portfolio. Both portfolios outperformed their benchmarks, with all of our portfolios which include an equity component now showing between 3% and 6% outperformance year-to-date. This builds on the significant long-term outperformance we have demonstrated for every strategy over the last 11 years.

We believe that ESG investing will boom post-Covid and added Cloud Computing and Biotech ETFs during May. Our technical and network analytics signals indicate that a strong rally is underway in equity markets, with selling pressure crossing back below buying power in late May (for the first time since February). This is a significant and positive intermediate signal. Market breadth has also expanded, with laggard small-caps and cyclicals now catching up fast. We continue to recommend a high weighting in equities and expect further strong gains in the months ahead.

Please follow this link to read Secure Wealth Management’s monthly ETF portfolio review for May 2020.