Investors with an exit strategy like our own – selling a fund when it’s 8% off the high or below its 200-day moving average – aren’t going to be interested in these ETFs. Being down in double digits year-to-date for the trend-following type is definitely not “acceptable.”
Buy-and-hold investors, though, have to accept both the ups and downs of what a long-term strategy like this will give you.
In markets like this, buy-and-holders are feeling pain just as everyone else is – that’s the bad news. These funds aren’t immune from the market declines.
However, going forward, this fund is fairly priced and if you’re looking to make a long-term buy-and-hold allocation, now might be a good time. But investors need to first ask what kind of investor they are; ETFs are not one size fits all. Will this work for you? What are your goals? What is your overall strategy, time horizon and risk profile? Answering these questions first will help you determine what kinds of funds will be the best fit for your portfolio.
Year-to-date, TDD is down 11.8% against the broader S&P 500, which is down 30.1%.