In the Rebound ETF model, manager Rebound Trading Systems uses both technical analysis and a proprietary momentum model for choosing ETFs to add. When the model is fully invested, a total of seven ETFs will be in the model. When the model is not fully invested, excess funds remain in a money market account. As ETFs stop trending upward, they may be sold from the model. This month, two new ETFs were added to Rebound ETF. The first was iShares Russell 2000 Growth Index Fund (IWO), an ETF that attempts to mirror the performance of the Russell 2000 Growth index. It does so by investing at least 90 percent of its underlying assets in securities on the Russell 2000 Growth index. According to Yahoo! Finance on December 23rd, the top holding in the fund is Human Genome Sciences Inc (NASDAQ: HGSI). On the same day, Morningstar.com showed the fund trading at a premium to NAV.
The second new addition to the model is PowerShares Dynamic Networking Portfolio (PXQ). PXQ invests at least 80 percent of its assets in the common stocks of networking companies in order to deliver investment results that mirror the performance of the Dynamic Networking Intellidex—an index of 30 U.S. companies in the networking sector. On December 23rd Yahoo! Finance reported the top holding in the fund as Riverbed Technology Inc (NASDAQ: RVBD). On the same day, Morningstar.com showed the fund trading at a discount to NAV.
