ETF Global® Dynamic Model Portfolios - 2Q Rebalance

Tuesday, April 4, 2017 - The new quarter kicks off a number of processes here at ETF Global and some that are of most interest are the reallocation and rebalancing of our Dynamic Model Portfolios.

Our proprietary, multi-factor models function as the engine behind our Model Portfolios and provide great insight into what products are scoring well:

Domestic Equity Allocations: We see a continued overweighting towards Small Cap and a tilt towards "Factor" products. The Factor tilt is both classic with the addition of Guggenheim S&P Smallcap 600 Pure Value ETF (RZV) and the more modern Factor-based PowerShares DWA SmallCap Momentum Portfolio (DWAS) which was carried over from last quarter. Most of the non-Small Cap exposure comes from the addition of Powershares QQQ Trust (QQQ).

International Equity Allocations: Exposure to the European markets increased with the addition of both SPDR EURO STOXX 50 ETF (FEZ) and iShares MSCI Spain Capped ETF (EWP) at the expense of APAC. The Emerging Markets' allocations continue to be tilted toward China.

Model Portfolio performance is available at ETF Global Model Portfolio Performance and an Overview of the program can be found here Program Overview

Below please find the 2Q 2017 “Base” 4 Portfolios:

Aggressive Global Growth - 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	8.0	Equity	Small Cap	North America	5.71	8.39	0.60
EEM	7.0	Equity	Broad Equity	Emerging Markets	5.68	8.02	0.72
EFA	10.0	Equity	Broad Equity	Developed Markets	4.40	7.48	0.33
EWP	5.5	Equity	Broad Equity	Europe	6.29	8.45	0.48
EWSC	8.0	Equity	Small Cap	North America	5.51	8.36	0.41
EWY	6.0	Equity	Broad Equity	Asia-Pacific	4.65	9.07	0.64
FEZ	10.0	Equity	Large Cap	Europe	5.12	7.53	0.29
QQQ	8.0	Equity	Large Cap	North America	3.19	7.77	0.20
RZV	7.5	Equity	Small Cap	North America	5.32	7.93	0.35
BNDX	2.0	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
IEF	5.0	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	3.0	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
DBV	5.0	Currency	Long/Short	Developed Markets	4.11	0.00	0.80
FTGC	5.0	Commodities	Broad Commodities	Global	4.82	0.00	0.95
SCHH	5.0	Real Estate	Real Estate	North America	3.71	0.00	0.07
Cash	5.0	Cash	Cash	North America

Moderate Global Growth – 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	10.00	Equity	Small Cap	North America	5.71	8.39	0.60
EEM	6.00	Equity	Broad Equity	Emerging Markets	5.68	8.02	0.72
EFA	10.00	Equity	Broad Equity	Developed Markets	4.40	7.48	0.33
EWSC	10.00	Equity	Small Cap	North America	5.51	8.36	0.41
EWY	7.00	Equity	Broad Equity	Asia-Pacific	4.65	9.07	0.64
FEZ	10.00	Equity	Large Cap	Europe	5.12	7.53	0.29
QQQ	7.00	Equity	Large Cap	North America	3.19	7.77	0.20
BNDX	4.00	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
IEF	10.00	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	6.00	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
DBV	5.00	Currency	Long/Short	Developed Markets	4.11	0.00	0.80
FTGC	5.00	Commodities	Broad Commodities	Global	4.82	0.00	0.95
SCHH	5.00	Real Estate	Real Estate	North America	3.71	0.00	0.07
Cash	5.00	Cash	Cash	North America

Balanced Global Growth & Income – 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	6.00	Equity	Small Cap	North America	5.71	8.39	0.60
EEM	4.00	Equity	Broad Equity	Emerging Markets	5.68	8.02	0.72
EFA	7.00	Equity	Broad Equity	Developed Markets	4.40	7.48	0.33
EWSC	6.00	Equity	Small Cap	North America	5.51	8.36	0.41
EWY	4.00	Equity	Broad Equity	Asia-Pacific	4.65	9.07	0.64
FEZ	7.00	Equity	Large Cap	Europe	5.12	7.53	0.29
QQQ	6.00	Equity	Large Cap	North America	3.19	7.77	0.20
BNDX	8.00	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
IEF	8.00	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	6.00	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
SCHO	8.00	Fixed Income	Treasury	North America	2.59	0.00	0.06
SCPB	6.00	Fixed Income	Investment Grade	North America	1.69	0.00	0.12
VMBS	4.00	Fixed Income	Agency MBS	North America	2.35	0.00	0.07
FTGC	2.50	Commodities	Broad Commodities	Global	4.82	0.00	0.95
SCHH	2.50	Real Estate	Real Estate	North America	3.71	0.00	0.07
Cash	15.00	Cash	Cash	North America

Conservative Global Income – 2Q

Ticker	%	Asset Class	Focus	Geographic Region	Risk	Reward	TER
DWAS	5.00	Equity	Small Cap	North America	5.71	8.39	0.60
FEZ	5.00	Equity	Large Cap	Europe	5.12	7.53	0.29
BNDX	7.00	Fixed Income	Investment Grade	Global Ex-U.S.	2.22	0.00	0.12
BWX	7.00	Fixed Income	Broad Sovereign	Global Ex-U.S.	5.65	0.00	0.50
IEF	10.00	Fixed Income	Treasury	North America	3.97	0.00	0.15
LQD	5.00	Fixed Income	Investment Grade	North America	4.00	0.00	0.15
SCHO	10.00	Fixed Income	Treasury	North America	2.59	0.00	0.06
SCPB	10.00	Fixed Income	Investment Grade	North America	1.69	0.00	0.12
TLT	7.00	Fixed Income	Treasury	North America	5.06	0.00	0.15
VCIT	6.00	Fixed Income	Investment Grade	North America	3.53	0.00	0.07
VMBS	8.00	Fixed Income	Agency MBS	North America	2.35	0.00	0.07
Cash	20.00	Cash	Cash	North America

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