The new ETF Review Covestor model comes from Chartcraft Inc., which was founded in 1947 by the legendary A W Cohen. Chartcraft has been at the forefront of developing technical analytical tools and provides research to both institutional and private investors. The company provides analysis into the price movements, trends and timing changes of stocks, currencies, commodities and financial futures. All analysis that is utilized in the investment process is derived from technical inputs.
The new Covestor model is run by Julian Burney, editor of financial newsletter The ETF Review. Julian started his career in finance in 1983 with Barclays Merchant Bank before moving to trade options on the London market with Kleinwort Benson. Since 1989, Julian has headed up independent analysts Stockcube Research, the parent company of Investors Intelligence. Stockcube Research has been providing technical research principally to institutional investors since 1990.
Covestor’s ETF Review model is a technically-driven model, based on the Investors Intelligence ETF service, intended to take advantage of liquid investment opportunities as provided in the ETF universe across asset classes.
A typical portfolio allocation will have up to twenty long positions and twenty short positions. Position size will reflect the volatility of the ETFs in question. Accordingly positions of 5-10% in fixed income ETFs, 3-5% in Index ETFs, 3-5% in sector ETFs, and 3-5% in commodity ETFs would be appropriate. Positions would be scales up or down in relation to material changes in volatility.
Current top holdings (6/2) include a short position in the Powershares QQQ ETF (NASDAQ: QQQ) and a short position in the iPath Dow Jones-UBS Copper ETF (NYSE: JJC).
