GLOBAL MOMENTUM GUIDE

Transcription

1 FEBRUARY 6, 2017 MUTUALFUNDINVESTORGUIDE.COM Matthew D. Sauer Founder & Chief Investment Officer Matthew Sauer is the Founder and Chief Investment Officer of the Mutual Fund Investor Guide family of newsletters. Each month he analyzes and provides buy, sell and hold recommendations for hundreds of mutual funds and ETFs in three newsletters: The Investor Guide to Fidelity Funds, The ETF Investor Guide and The Investor Guide to Vanguard Funds. Prior to starting the Mutual Fund Investor Guide, Matthew was President and Chief Investment Officer of the Fidelity Independent Adviser, ETF Report & Sector Momentum Tracker newsletters. WEEKLY SECTOR PERSPECTIVE Friday s strong jobs report lifted the market last week. The Russell 2000 Index was the best performer, gaining 0.52 percent. The S&P 500 Index increased 0.12 percent; the Nasdaq climbed 0.11 percent; and the MSCI EAFE rose 0.01 percent. The Dow Jones Industrial Average slid 0.11 percent. The ETF International Portfolio climbed 0.47 percent last week. The Fidelity Select Sector Portfolio fell 0.67 percent; the ETF Sector Portfolio dipped 1.02 percent; the ETF Blended Portfolio declined 1.42 percent. In 2017, the Nasdaq is up 5.27 percent. The MSCI EAFE has gained 3.43 percent; the S&P 500 Index has increased 2.62 percent; the Dow Jones Industrial Average has rallied 1.56 percent; and the Russell 2000 Index has advanced 1.52 percent. The ETF International Portfolio has increased 6.53 percent. The ETF Sector Portfolio has risen 4.24 percent; the ETF Blended Portfolio has grown 3.44 percent; and the Fidelity Select Sector Portfolio has returned 1.63 percent. There was one big relative momentum winner last week among Fidelity Select Sector funds: Multimedia (FBMPX). The fund jumped four spots in the rankings to number 11. There were two big relative momentum losers among Fidelity Select Sector funds last week. Communications Equipment (FSDCX) slid three spots, as did Fidelity Select Natural Resources (FNARX). Hard assets gained the most momentum last week. VanEck Rare Earth (REMX) climbed ten places to number 17. Global X Lithium (LIT) advanced seven, while Global X Uranium (URA) move up six. Technology (IYW), software (IGV) and Medical Devices (IHI) rounded out winners. Energy funds dominated the relative momentum losers among sector ETFs. ishares U.S. Energy (IYE) fell ten spots last week, closely followed by SPDR Energy (XLE) and U.S. Natural Gas (UNG), both of which slid six places. Non-energy funds included SPDR Retail (XRT) and ishares Cohen & Steers Realty Majors (ICF), both down four spots. Among international ETFs, the top gainer was ishares MSCI Poland (EPOL) and it replaces EWC in the portfolio this week. The other relative momentum gainers are scattered around the globe: ishares MSCI Sweden (EWD), South Korea (EWY), and Spain (EWP) among others. The U.S. dollar funds saw the largest loss in relative momentum last week, with WisdomTree Bloomberg U.S. Dollar Index Bullish (USDU) down nine and PowerShares DB U.S. Dollar Index Bullish (UUP) sliding eight. A flare up of Greece s debt crisis abruptly ended the fund s advance in the momentum rankings. GREK fell eight spots last week. FIDELITY SELECT SECTOR PORTFOLIO TRADES: SELL ENERGY FSENX BUY CHEMICALS FSCHX PERSPECTIVE 1,16 FIDELITY 2-4 ETF SECTOR 4-9 ETF INTL BLENDED 15 DISCLOSURE 17 ETF SECTOR PORTFOLIO TRADES: NO TRADES ETF INTERNATIONAL PORTFOLIO TRADES: SELL CANADA EWC BUY POLAND EPOL BLENDED ETF PORTFOLIO TRADES: NO TRADES 1

2 FIDELITY SECTOR MOMENTUM RANKINGS Name Symbol 11/11 11/18 11/25 12/2 12/9 12/16 12/23 12/30 1/6 1/13 1/20 1/27 2/3 Banking FSRBX Energy Services FSESX Natural Gas FSNGX Semiconductors FSELX Financial Services FIDSX Transportation FSRFX Air Transport FSAIX Brokerage FSLBX Consumer Finance FSVLX Chemicals FSCHX Multimedia FBMPX Energy FSENX Environmental Svcs FSLEX Insurance FSPCX Computers FDCPX Defense & Aero FSDAX Natural Resources FNARX Industrials FCYIX Materials FSDPX Technology FSPTX Telecommunications FSTCX Comm Equip FSDCX Software FSCSX Automotive FSAVX Industrial Equip FSCGX Wireless FWRLX S&P 500 Index SPX Leisure FDLSX Healthcare Svcs FSHCX IT Services FBSOX Consumer Discr FSCPX Constr & Housing FSHOX Retailing FSRPX Utilities FSUTX Medical Equip FSMEX Biotechnology FBIOX Consumer Staples FDFAX HealthCare FSPHX Government Income FGOVX Gold FSAGX Pharmaceuticals FPHAX PHONE: (888)

3 FIDELITY SECTOR PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year Air Transport FSAIX Automotive FSAVX Banking FSRBX Biotechnology FBIOX Brokerage FSLBX Chemicals FSCHX Comm Equip FSDCX Computers FDCPX Constr & Housing FSHOX Consumer Discr FSCPX Consumer Finance FSVLX Consumer Staples FDFAX Defense & Aero FSDAX Energy FSENX Energy Services FSESX Environmental Svcs FSLEX Financial Services FIDSX Gold FSAGX Government Income FGOVX HealthCare FSPHX Healthcare Svcs FSHCX Industrial Equip FSCGX Industrials FCYIX Insurance FSPCX IT Services FBSOX Leisure FDLSX Materials FSDPX Medical Equip FSMEX Multimedia FBMPX Natural Gas FSNGX Natural Resources FNARX Pharmaceuticals FPHAX Retailing FSRPX S&P 500 SPX Semiconductors FSELX Software FSCSX Technology FSPTX Telecommunications FSTCX Transportation FSRFX Utilities FSUTX Wireless FWRLX PHONE: (888)

4 FIDELITY SELECT SECTOR RETURNS PERIOD PORTFOLIO BENCHMARK S&P 500 Nasdaq Dow Russell 2000 YTD Week Week Week Week Year Inception* *Inception on 12/31/2011 FIDELITY PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE VALUE Date Purchased PERCENT 1 Banking FSRBX $24, /14/ % 2 Energy Services FSESX $24, /24/ % 3 Natural Gas FSNGX $21, /31/ % 4 Semiconductors FSELX $27, /20/ % 5 Financial Services FIDSX $19, /28/ % 5 Transportation FSRFX $20, /21/ % 7 Air Transport FSAIX $17, /28/ % 8 Brokerage FSLBX $19, /12/ % 9 Consumer Finance FSVLX $19, /09/ % 12 Energy FSENX $20, /31/ % $215, % THIS WEEK S FIDELITY TRADE RECOMMENDATIONS At the close of trading on February 6, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold each Fidelity fund for 30 days to avoid a short-term trading fee even if it falls out of the top 10. Sell Energy Buy Chemicals FSENX FSCHX Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit No trades last week 4 PHONE: (888)

5 ETF SECTOR MOMENTUM RANKINGS Name Symbol 11/11 11/18 11/25 12/2 12/9 12/16 12/23 12/30 1/6 1/13 1/20 1/27 2/3 Glb X Copper Miners COPX VanEck Steel SLX SPDR S&P Reg Bank KRE SPDR Metals & Mining XME SPDR S&P Bank KBE ishares US Reg Banks IAT Glb X Uranium URA ishares US Broker Dealers IAI SPDR Oil & Gas Equip XES VanEck Coal KOL ishares US Financial Svcs IYG ishares Semiconductor SOXX ishares US Oil Equip IEZ SPDR Financial XLF PShrs DB Base Metals DBB ishares DJ Transports IYT VanEck Rare Earth REMX SPDR S&P Cap Mkt KCE ishares US Finance IYF SPDR Oil & Gas Explor XOP ETFS Palladium PALL SPDR S&P Insurance KIE ishares NA Networking IGN ishares US Insurance IAK ishares Russell2000 IWM PShrs Dyn Leisure PEJ ishares US Oil & Gas Exp IEO ishares US Aero & Defense ITA Glb X Lithium LIT ishares US Basic Materials IYM ishares US Telecom IYZ SPDR Industrial XLI ishares US Technology IYW SPDR DJIA DIA ishares US Industrial IYJ SPDR Energy XLE PShrs Private Equity PSP ishares NA Natural Res IGE SPDR Basic Materials XLB ishares NA Technology IGM VanEck Ag Business MOO FrTrust DJ Internet FDN SPDR Technology XLK ishares US Energy IYE FrTrust Global Auto CARZ US Brent Oil BNO Guggenheim Timber CUT Guggenheim Shipping SEA PShrs Dyn Media PBS PHONE: (888)

6 ETF SECTOR MOMENTUM RANKINGS Name Symbol 11/11 11/18 11/25 12/2 12/9 12/16 12/23 12/30 1/6 1/13 1/20 1/27 2/3 PShrs DB Oil DBO SPDR S&P 500 SPY PShrs NASDAQ Internet PNQI FrTrust Natural Gas FCG SPDR Cons Disc XLY ishares US Cons Service IYC PShrs Water PHO ishares NA Software IGV US Oil USO SPDR Biotech XBI ishares GSCI Commodity GSG Global X Social Media SOCL VanEck Gaming BJK ipath DJ Livestock COW ishares US Home Constr ITB Teucrium Soybean SOYB US Natural Gas UNG ishares US Med Devices IHI SPDR Homebuilders XHB VanEck Nuclear Energy NLR ishares US Cons Goods IYK ishares US Utilities IDU SPDR Retail XRT SPDR Utilities XLU FrTrust Global Wind FAN ishares US Real Estate IYR ishares US Healthcare IYH SPDR Cons Staples XLP FrTrust Biotech FBT SPDR Healthcare XLV PShrs DB Agriculture DBA ishares US Preferred PFF PShrs Fin Preferred PGF ishares C & S Realty ICF ishares NASDAQ Biotech IBB PShrs Clean Energy PBW ishares Agg Bond AGG Teucrium Corn CORN ETFS Platinum PPLT VanEck Jr Gold Miners GDXJ ishares Silver Trust SLV Glb X Silver Miners SIL ishares Comex Gold IAU SPDR Gold GLD VanEck Gold Miners GDX ishares 20+ Yr Tres Bond TLT SPDR Pharmaceuticals XPH Guggenheim Solar Energy TAN PHONE: (888)

7 ETF SECTOR PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year ETFS Palladium PALL ETFS Platinum PPLT FrTrust Biotech FBT FrTrust DJ Internet FDN FrTrust Global Auto CARZ FrTrust Global Wind FAN FrTrust Natural Gas FCG Glb X Copper Miners COPX Glb X Lithium LIT Glb X Silver Miners SIL Glb X Uranium URA Global X Social Media SOCL Guggenheim Shipping SEA Guggenheim Solar Energy TAN Guggenheim Timber CUT ipath DJ Livestock COW ishares 20+ Yr Tres Bond TLT ishares Agg Bond AGG ishares C & S Realty ICF ishares Comex Gold IAU ishares DJ Transports IYT ishares GSCI Commodity GSG ishares NA Natural Res IGE ishares NA Networking IGN ishares NA Software IGV ishares NA Technology IGM ishares NASDAQ Biotech IBB ishares Russell2000 IWM ishares Semiconductor SOXX ishares Silver Trust SLV ishares US Aero & Defense ITA ishares US Basic Materials IYM ishares US Broker Dealers IAI ishares US Cons Goods IYK ishares US Cons Service IYC ishares US Energy IYE ishares US Finance IYF ishares US Financial Svcs IYG ishares US Healthcare IYH ishares US Home Constr ITB ishares US Industrial IYJ ishares US Insurance IAK ishares US Med Devices IHI ishares US Oil & Gas Exp IEO ishares US Oil Equip IEZ ishares US Preferred PFF ishares US Real Estate IYR ishares US Reg Banks IAT ishares US Technology IYW PHONE: (888)

8 ETF SECTOR PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year ishares US Telecom IYZ ishares US Utilities IDU MV Ag Business MOO MV Coal KOL MV Gaming BJK MV Gold Miners GDX MV Jr Gold Miners GDXJ MV Nuclear Energy NLR MV Rare Earth REMX MV Steel SLX PShrs Clean Energy PBW PShrs DB Agriculture DBA PShrs DB Base Metals DBB PShrs DB Oil DBO PShrs Dyn Leisure PEJ PShrs Dyn Media PBS PShrs Fin Preferred PGF PShrs NASDAQ Internet PNQI PShrs Private Equity PSP PShrs Water PHO SPDR Basic Materials XLB SPDR Biotech XBI SPDR Cons Disc XLY SPDR Cons Staples XLP SPDR DJIA DIA SPDR Energy XLE SPDR Financial XLF SPDR Gold GLD SPDR Healthcare XLV SPDR Homebuilders XHB SPDR Industrial XLI SPDR Metals & Mining XME SPDR Oil & Gas Equip XES SPDR Oil & Gas Explor XOP SPDR Pharmaceuticals XPH SPDR Retail XRT SPDR S&P 500 SPY SPDR S&P Bank KBE SPDR S&P Cap Mkt KCE SPDR S&P Insurance KIE SPDR S&P Reg Bank KRE SPDR Technology XLK SPDR Utilities XLU Teucrium Corn CORN Teucrium Soybean SOYB US Brent Oil BNO US Natural Gas UNG US Oil USO PHONE: (888)

9 ETF SECTOR RETURNS PERIOD PORTFOLIO BENCHMARK S&P 500 Nasdaq Dow Russell 2000 YTD Week Week Week Week Year Inception* *Inception on 12/31/2011 ETF SECTOR PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE Value DATE PURCHASED PERCENT 2 VanEck Steel SLX $25, /09/ % 3 SPDR S&P Reg Bank KRE $22, /07/ % 4 SPDR Metals & Mining XME $20, /06/ % 5 SPDR S&P Bank KBE $17, /14/ % 7 Glb X Uranium URA $13, /30/ % 8 ishares US Broker Dealers IAI $17, /14/ % 9 SPDR Oil & Gas Equip XES $21, /19/ % 10 VanEck Coal KOL $21, /05/ % 11 ishares US Financial Svcs IYG $15, /28/ % 11 ishares Semiconductor SOXX $22, /08/ % $196, % THIS WEEK S ETF SECTOR TRADE RECOMMENDATIONS At the close of trading on February 6, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. No Trades We hold the top 10 highest ranked ETFs, but do not hold more than 2 ETFs from the same sector. There is no minimum holding period for ETFs. Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit 1/30/2017 SPDR Oil & Gas Explor XOP $15, $14, $ PHONE: (888)

10 ETF INTERNATIONAL MOMENTUM RANKINGS Name Symbol 11/11 11/18 11/25 12/2 12/9 12/16 12/23 12/30 1/6 1/13 1/20 1/27 2/3 VanEck Russia Sm Cap RSXJ VanEck Russia RSX WTree Japan Hedged DXJ VanEck Brazil Small Cap BRF ishares Brazil EWZ Glb X Argentina ARGT Glb X Norway 30 NORW ishares Austria EWO WTree Europe Hedged HEDJ WTree Japan Sm Cap Div DFJ ishares Poland EPOL ishares All Peru EPU ishares S&P Latin Am 40 ILF WTree Dreyfus Brazil Real BZF ishares Canada EWC ishares MSCI Italy EWI ishares Australia EWA WTree Emg Markts HiYld DEM Glb X Greece 20 GREK ishares Global 100 IOO ishares Taiwan EWT VanEck Africa AFK ishares Germany EWG ishares Thailand Invest THD ishares ACWI Index ACWI ishares Pacific ex-japan EPP ishares France EWQ ishares DJ Euro 50 FEZ ishares Japan EWJ ishares Sweden EWD Glb X Colombia GXG ishares Spain EWP ishares EMU Index EZU ishares South Korea EWY WTree Euro Sm Cap Div DFE ishares Japan Sm Cap SCJ ishares Chile ECH WTree USD Bullish USDU PShares USD Bullish UUP ishares ACWI ex-us ACWX WTree Emg Mkt Sm Cap DivDGS ishares Emerging Markets EEM ishares MSCI EAFE EFA SPDR Emg Mkts Sm Cap EWX ishares Singapore EWS ishares S&P Europe 350 IEV Wtree Intl Hedged IHDG PHONE: (888)

11 ETF INTERNATIONAL MOMENTUM RANKINGS Name Symbol 11/11 11/18 11/25 12/2 12/9 12/16 12/23 12/30 1/6 1/13 1/20 1/27 2/3 ishares South Africa EZA China Large Cap FXI ishares Netherlands EWN SPDR MidEast & Africa GAF ishares Finland EFNL VanEck India Sm Cap SCIF ishares MSCI U Kingdom EWU ishares Switzerland EWL Gugg China Sm Cap HAO ishares Asia ex Japan AAXJ WTree India EPI ishares Ireland EIRL ishares Hong Kong EWH db xtrackers China ASHR ishares Israel Cap Invest EIS ishares New Zealand ENZL Gugg China RE TAO PwrShrs Golden Dragon PGJ CurrShrs Aust Dollar FXA ishares Belguim EWK ishares India 50 INDY CurrShrs Can Dollar FXC WTree Emg Currency CEW VanEck Indonesia IDX ishares MSCI Emg MinVol EEMV Wtree Asia Local Debt ALD WTree China Yuan CYB ishares MSCI EAFE MinVol EFAV CurrShrs SwissFranc FXF ishares S&P World Property WPS ishares Denmark EDEN Euro Currency Trust FXE CurrShrs Swed Krona FXS VanEck Vietnam VNM ishares Maylasia EWM CurrShrs Brit Pound FXB Vanguard Intl Bond BWX ishares Philippines EPHE CurrShrs Japanese Yen FXY ishares Mexico EWW ishares Turkey TUR Glb X Nigeria NGE VanEck Egypt EGPT PHONE: (888)

12 ETF INTERNATIONAL PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year CurrShrs Aust Dollar FXA CurrShrs Brit Pound FXB CurrShrs Can Dollar FXC CurrShrs Japanese Yen FXY CurrShrs Swed Krona FXS CurrShrs SwissFranc FXF db xtrackers China ASHR Euro Currency Trust FXE Glb X Argentina ARGT Glb X Colombia GXG Glb X Greece 20 GREK Glb X Nigeria NGE Glb X Norway 30 NORW Gugg China RE TAO Gugg China Sm Cap HAO ishares ACWI ex-us ACWX ishares ACWI Index ACWI ishares All Peru EPU ishares Asia ex Japan AAXJ ishares Australia EWA ishares Austria EWO ishares Belguim EWK ishares Brazil EWZ ishares Canada EWC ishares Chile ECH ishares China Large Cap FXI ishares Denmark EDEN ishares DJ Euro 50 FEZ ishares Emerging Markets EEM ishares EMU Index EZU ishares Finland EFNL ishares France EWQ ishares Germany EWG ishares Global 100 IOO ishares Hong Kong EWH ishares India 50 INDY ishares Ireland EIRL ishares Israel Cap Invest EIS ishares Japan EWJ ishares Japan Sm Cap SCJ ishares Maylasia EWM ishares Mexico EWW ishares MSCI EAFE EFA ishares MSCI EAFE MinVol EFAV ishares MSCI Emg MinVol EEMV ishares MSCI Italy EWI ishares MSCI U Kingdom EWU PHONE: (888)

13 ETF INTERNATIONAL PERFORMANCE RETURNS Name Symbol Price 1 Week 2 Week 3 Week 1 Month 3 Month 6 Month 9 Month YTD 1 Year ishares Netherlands EWN ishares New Zealand ENZL ishares Pacific ex-japan EPP ishares Philippines EPHE ishares Poland EPOL ishares S&P Europe 350 IEV ishares S&P Latin Am 40 ILF ishares S&P World Property WPS ishares Singapore EWS ishares South Africa EZA ishares South Korea EWY ishares Spain EWP ishares Sweden EWD ishares Switzerland EWL ishares Taiwan EWT ishares Thailand Invest THD ishares Turkey TUR MV Africa AFK MV Brazil Small Cap BRF MV Egypt EGPT MV India Sm Cap SCIF MV Indonesia IDX MV Russia RSX MV Russia Sm Cap RSXJ MV Vietnam VNM PShares USD Bullish UUP PwrShrs Golden Dragon PGJ SPDR Emg Mkts Sm Cap EWX SPDR MidEast & Africa GAF Vanguard Intl Bond BWX Wtree Asia Local Debt ALD WTree China Yuan CYB WTree Dreyfus Brazil Real BZF WTree Emg Currency CEW WTree Emg Markts HiYld DEM WTree Emg Mkt Sm Cap Div DGS WTree Euro Sm Cap Div DFE WTree Europe Hedged HEDJ WTree India EPI Wtree Intl Hedged IHDG WTree Japan Hedged DXJ WTree Japan Sm Cap Div DFJ WTree USD Bullish USDU PHONE: (888)

14 ETF INTERNATIONAL PORTFOLIO PERFORMANCE PERIOD PORTFOLIO MSCI EAFE S&P 500 Nasdaq Dow Russell 2000 YTD Week Week Week Week Year Inception* *Inception on 12/31/2011 INTERNATIONAL PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE VALUE Date Purchased PERCENT 2 VanEck Russia RSX $12, /21/ % 3 WTree Japan Hedged DXJ $10, /28/ % 4 VanEck Brazil Small Cap BRF $13, /09/ % 5 ishares Brazil EWZ $16, /18/ % 6 Glb X Argentina ARGT $18, /23/ % 7 Glb X Norway 30 NORW $13, /19/ % 8 ishares Austria EWO $12, /21/ % 9 WTree Europe Hedged HEDJ $12, /27/ % 10 WTree Japan Sm Cap Div DFJ $12, /07/ % 15 ishares Canada EWC $12, /27/ % $134, % THIS WEEK S INTERNATIONAL TRADE RECOMMENDATIONS At the close of trading on February 6, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold the top 10 highest ranked ETFs, but do not hold more than 2 ETFs from the same geographic region. There is no minimum holding period for ETFs. Canada Poland Sell Buy EWC EPOL Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit No trades last week 14 PHONE: (888)

15 ETF BLENDED PORTFOLIO PERIOD PORTFOLIO S&P 500 Nasdaq RUSSELL 2000 MSCI EAFE YTD Week Week Week Week Year Inception* *Inception on 12/31/2013 BLENDED PORTFOLIO HOLDINGS RANK FUND SYMBOL SHARES PRICE VALUE Date Purchased PERCENT 3 Market Vectors Steel SLX $13, /02/ % 4 SPDR Regional Bank KRE $7, /23/ % 6 SPDR Bank KBE $7, /19/ % 8 Global X Uranium URA $6, /30/ % 11 Market Vectors Coal KOL $12, /05/ % 13 ishares Semiconductor SOXX $9, /15/ % 14 ishares Oil Equipment IEZ $11, /29/ % 17 WTree Japan Hedged DXJ $8, /27/ % 20 VanEck Brazil Small Cap BRF $7, /10/ % 103 WTree USD Bullish USDU $7, /16/ % $91, % THIS WEEK S INTERNATIONAL TRADE RECOMMENDATIONS At the close of trading on February 6, 2017 we will make the following trades. Proceeds from multiple fund sales should be split evenly between new purchases. We hold the top 10 highest ranked ETFs, but do not hold more than 2 ETFs from the same country or sector. There is no minimum holding period for ETFs. No Trades Last Week s Sell Transactions Date Fund Symbol Shares Buy Value Sell Proceeds Profit 1/30/2017 SPDR Oil & Gas Explor XOP $42.22 $7, $7, $ PHONE: (888)

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17 WHAT IS THE GLOBAL MOMENTUM GUIDE? The Mutual Fund Investor Guide: Global Momentum Guide delivers a strategy which entails investing in momentum leading exchange-traded funds (ETFs) and mutual funds, with the goal of generating long-term market beating gains. Momentum investing involves finding the stocks or sectors that are outperforming the market and buying them, while avoiding or even shorting stocks or sectors that are under performing. How the Global Momentum Guide Works Each week, the Global Momentum Guide will report updated momentum rankings along with trade advice. Subscribers receive buy, sell and hold advice on several portfolios made up of Fidelity Select mutual funds, sector ETFs and international ETFs. Investors hold the top 10 funds based on our proprietary ranking system, adjusted for correlation. When a fund falls from the top 10, we will issue a sell signal on it, and simultaneously issue a buy order on a rising fund that replaces it. Funds that remain in the top 10 are held. The system used by the Global Momentum Guide is designed to generate longterm out performance. It is also designed to remove human emotion from trading. Sometimes sell orders are issued for sectors that are extremely popular with investors and other times it will issue a hold signal on a sector experiencing a large correction that has many investors panicking. This can result in volatile returns, but our experience with the system has shown that some of the largest gains are made in sectors that experience big corrections during the course of a bull market. One of the biggest benefits of using the Global Momentum Guide is that it takes emotion and guesswork out of investing. Why the Global Momentum Guide Works Different sectors lead the stock market at each stage of a market cycle. For instance, consumer discretionary stocks typically lead in the early stage of a bull market, technology stocks lead in the middle, and consumer staples lead at the end. These stages of the market can last for months or even years. Countries, commodities and currencies all experience the same cyclical movements as investor move in and out of investments in waves. There are many explanations for cyclical behavior in the markets, but we don t worry about the whys because the Global Momentum Guide uses a mechanical system of technical indicators to select investments. These signals tells us which funds are leading and which are lagging, and we position the portfolio in the leading funds. If technology stocks lead in the early part of a bull market, our system will pick that up and issue a buy signal. Momentum investing works because investors have been reliably predictable throughout history there hasn t been a market yet where investors didn t exhibit some cyclical behavior. The Global Momentum Guide is designed to capture the gains from these big winners during each bull market phase of the stock market. What Do I Get When I Subscribe? Every week you will receive an updated ranking of all the funds covered in our newsletter, plus buy, hold and sell advice on each of the portfolios. How Do I Begin Following the Model? To begin following a model, purchase equal dollar amounts of each holding in the model. We will hold the funds for at least a week in the case of ETFs, and for 30 days with Fidelity Select funds due to a short term trading fee on Fidelity Select funds held less than 30 days. SUBSCRIPTION REFUND POLICY 30 DAY 100% GUARANTEE; NO REFUNDS AFTER 30 DAYS. ETF INVESTOR GUIDE Each month we provide buy, hold and sell recommendations for hundreds of ETFs from companies including Fidelity, ishares, SPDR and Power- Shares. Additionally, you will also have access to our model portfolios, specifically created for conservative, moderate and aggressive investors. To learn more, call (888) INVESTOR GUIDE TO VANGUARD FUNDS For years, we have covered a limited number of Vanguard mutual funds. In 2014, we launched a newsletter dedicated specifically to Vanguard funds and no-transaction-fee funds accessible to Vanguard investors. We provide numerous model portfolios, plus buy, hold and sell recommendations on over 400 mutual funds. I am confident you will find this advice invaluable as you make your investment decisions. To learn more, call (888) DISCLOSURE: Mutual Fund Investor Guide, LLC (MFIG) is an independent company unaffiliated with any of the fund companies discussed in this newsletter, including Fidelity Investments. These results include the reinvestment of all dividends and capital gains. Model trading does not involve financial risk; model trading cannot completely duplicate the financial risk associated with actual trading. MFIG is not an investment advisor and does not provide specific investment advice. This newsletter has been prepared solely for informational purposes. PAST PERFORMANCE IS NOT A GUARANTEE OF FUTURE RESULTS. All investments involve risk including total loss of principal. 17