The Trade Report

June updates to our ETF portfolios

Good morning,

It was the best May in 35 years for the S&P 500, and our portfolios rallied alongside the indexes.

Both models lagged their benchmarks slightly since our last trades on May 6, but that was entirely due to systemic underweights to Nvidia, created by the concentration rules governing ETFs. The stock, which is up 21% since May 6, is responsible for nearly one-quarter of the S&P 500’s 6.1% gain over that time.

However, nearly every other intentional bet in our portfolios was profitable, headlined by ITA (aerospace and defense), which was added last month and proceeded to post its fourth-best month since its 2006 inception.