In February I announced a new "Dual ETF Momentum" spreadsheet. The idea was inspired by a paper written by Gary Antonacci and available on Optimal Momentum. The spreadsheet is available here. The objective of the spreadsheet is to track four pairs of ETFs and provide an "Invested" signal for the ETF in each pair with the highest relative momentum.

Relative momentum is gauged by the 12 month total returns of each ETF. The 12 month total returns of each ETF is also compared to a short-term Treasury bill ETF (a "cash" filter). In order to have an "Invested" signal, the ETF with the highest relative strength must also have 12-month total returns greater than the 12-month total returns of the cash ETF. This is the absolute momentum filter which is detailed in depth by Antonacci, and has historically helped increase risk-adjusted returns.

I have added an "average"

This is the advice - not quite verbatim - that we've been giving to certain clients. You'd be amazed at how much some people push back against taking profits.

"That one (insert large telecom or utility stock, master limited partnership, or high yield bond fund) has been good to me lately. I like it and I want to hold onto it a while longer."

I understand that logic. I really do. But chances are, by the time you "don't like it" the price will be lower than it is today….

"I like to sell the losers, not the winners - it's just common sense."

You're right, it is common sense. Unfortunately, common sense is not always a lucrative investment strategy. Common sense would have kept you out of the market the past five years. Common sense would tell you that, since you are hearing so much

I recently read an SA article by Bob Wells where he discussed a problem he has regarding who would take over management of his portfolio when he is no longer able to do so. He looked at ETFs as a possible solution, without complete satisfaction. David Van Knapp has also written in SA concerned with the same problem. I, and possibly most of us, have the same successor problem. Both David and I (with Bob and probably others) have analyzed using ETFs as a potential solution, without success. I believe a reason for this is that we all were looking at individual ETFs with the hope of finding one (at least) that satisfies the dividend growth criteria. This article takes another, broader, look.

The reason for these concerns is that we don't know how much maintenance is needed to keep our portfolios within its objectives. If we have chosen