Trade Alert – Equity And ETF Models
We added a little duration to our bond sleeves and better balanced them this morning. We held off on adding the more volatile TLT due to the potential price swings around the debt cap. We bought 6% of IEI (3-7yr UST) and sold 6% of TFLO to make room for it.
The weighted average duration of our portfolio is now almost a year greater than our benchmark. That said, we only hold Treasury bonds, while AGG has corporate and MBS bonds. Given how tight corporate spreads remain, there is likely little upside to corporate spreads, and plenty of downside if the economy slows markedly.
Both Models
- Sell 100% of iShares Treasury Floating Rate Bond ETF (TFLO)
- Buy 6% of the portfolio into the iShares 3-7 Year Treasury Bond ETF (IEI)
Lance Roberts is a Chief Portfolio Strategist/Economist for RIA Advisors. He is also the host of “The Lance Roberts Podcast” and Chief Editor of the “Real Investment Advice” website and author of “Real Investment Daily” blog and “Real Investment Report“. Follow Lance on Facebook, Twitter, Linked-In and YouTube
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