Backtest Portfolio




I have chosen DEM as emerging markets have been disappointing overall in 2018, but DEM has been a notable out performer.

I have chosen SPY as it has been consistent for log duration of period.

I have chosen MOAT and QUAL as an attempt to emulate successful investors, such as Warren Buffett, the famed "Oracle of Omaha." There is no specific Warren Buffett  ETF, but there are some that aim to make Buffett-like investments, including the three described below. (material available on the net that helped me reach upon my final selection for desirable ETFS.

Market Vectors Wide Moat ETF

The term "moat" as it relates to investing was coined by Buffett to describe any company with a competitive advantage within an industry that offers it moat-like protection. The Market Vectors Wide Moat ETF (NYSEARCA: MOAT), launched by Van Eck Global in 2012, aims to identify and invest in such companies. The fund seeks to employ its $774 million in assets in tracking the performance of the Morning star Wide Moat Focus Index. The underlying index offers investors exposure to the 20 most attractively priced companies that Morningstar's equity research team identified as having sustainable competitive advantages within their respective industries. This medium-risk-rated fund has an expense ratio of 0.49% and offers a dividend yield of 1.41%. The three-year annualized return as of 2015 is 10.08%. Major portfolio holdings include News Corporation, the Procter & Gamble Company, Union Pacific Corporation, Time Warner and Berkshire Hathaway.

SPDR Financial Select Sector ETF

The SPDR Financial Select Sector ETF (NYSEARCA: XLF) offers broad exposure to companies in the financial sector, and it also invests directly in Berkshire Hathaway stock, which accounts for nearly 9% of the fund's portfolio holdings. This fund was launched by State Street Global Advisers in 1998. It tracks the performance of the S&P Financial Select Sector Index, which includes companies from the broad financial services sector including banks, insurance companies, thrifts and REIT s. The fund's expense ratio is a low 0.15%, and it offers a dividend yield of 1.87%. In addition to Berkshire Hathaway, the fund's major holdings include Wells Fargo, JP Morgan Chase, Goldman Sachs and American Express. Although given an above-average risk rating by Morningstar, the fund's five-year annualized return as of 2015 is 11.43%.

i Shares MSCI USA Quality Factor ETF

The i Shares MSCI USA Quality Factor ETF (NYSEARCA: QUAL), launched in 2013 by Black Rock, has over $1.4 billion in assets. The fund aims to invest in high-quality stocks by tracking the MSCI USA Sector Neutral Quality Index, which invests in large- and mid-cap stocks selected on the basis of three fundamental metrics: debt to equity (D/E), return on equity (ROE) and earnings variability. The fund's total return since its inception is 10.57%. It has an expense ratio of 0.15% and a dividend yield of 1.59%. This medium-risk-rated fund is heavily invested in the technology, financial and health care sectors. Major portfolio holdings include Apple, Johnson & Johnson, Gilead Sciences, Berkshire Hathaway and MasterCard.


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