Dashboard ETF Revision

April 21, 2012

Since Buy DON’T Hold was published in April 2010 there have been many additions to the ETF universe which now contain over 1,200 ETFs and ETNs valued at over $1.25 trillion. I have reviewed the existing list and made a number of deletions and additions based upon the latest information available. For example, the nine Morningstar Style Box ETFs (page 89 in book) were replaced with more liquid ETFs. The replacements have a much smaller bid-ask spreads and much higher daily volume, always a preferred situation. Additionally, the number of International–Country ETFs (page 90-91) was greatly reduced. The diverse holding of the existing MSCI EAFE (EFA) and the Emerging Markets ETF (EEM) are more than adequate. I also left a handful of other high volume ETFs that need separate coverage. The latest list is provided at the end of this document in Appendix 1.

A copy of this list will be sent to and so that they can update their information and also be ready for its implementation when the next buy signal is given.

As a manager of your own investments you can add or delete ETFs to this list to meet your individual preferences. You can also copy your ETF list into and save it for reviewing your own portfolio performance. Remember to make sure that you perform your due diligence on any ETFs that you purchase. This can be accomplished by reviewing the portfolio components, annual expense ratio, and other data on each ETF before you purchase it. Sites to consider obtaining the information are:

and your brokerage platforms.

Change in Number of Invested ETFs

I am also changing the number of recommended ETFs from 15 to 5. This change is based on other additional ETF research that I have performed over the past two years indicating that the performance deteriorates with large number of ETFs in the portfolio. The reason that I initially recommended 15 ETF was to allow investors to broadly diversify among the five asset classes (pages 86-87). Clearly, this is not an optimal approach as all these categories are not top-rated at the same time. Therefore, I will instruct to invest in only the top 5 ETFs going forward. The past performance results of the 15 ETF portfolio will still be kept on that website. You can also decide for yourself if you prefer to have 5 ETFs in your portfolio or if you prefer to reduce or expand this number. Tailor your portfolio to your needs, preferences and risk tolerance.

Fixed Income Investing

As far as the use of the Fixed Income ETFs are concerned, they can be used for investment during a Dashboard SELL signal and/or a core position that is not changed unless each ETF falls below its own 20-dma or falls below the stop LIMIT order that you decide on. Many conservative investors like to have a permanent 40%-60% position of fixed income. Remember that on a buy signal NO fixed income ETFs should be bought even if they are ranked high on the relative strength list, as they are defensive and will fall in price when equity ETFs rise. Refer to page 144 of text for a more complete explanation. Likewise, on a Dashboard Sell signal, the fixed income ETFs should not be sold.

Appendix 1. Dashboard V2 Revised List April 21, 2012

Fixed Income

iShares Barclay 7-10 Year Tsy IEF

iShares Barclay Aggregate Bond AGG

iShares Lehman 20+ Year Tsy TLT

iShares SP US Preferred PFF

Pimco Total Return BOND (New fund April 2012)

SPDR Barclay High Yield Bond JNK

Commodities

iShares Silver SLV

Market Vectors Gold Miners GDX

PowerShares DB Commodity Index DBC

PowerShares DB Agricultural Commodities DBA

Market Vector Agribusiness MOO

SPDR S&P Oil/Gas Exploration &Prod XOP

United States Gasoline UGA

International

iShares MSCI EAFE EFA

iShares MSCI Emerging Markets EEM

iShares MSCI Taiwan EWT

iShares MSCI Australia EWA

iShares MSCI Canada EWC

Market Vectors Brazil Small Cap BRF

WisdomTree India Earnings Fund EPI

PowerShares Int’l Dividend Achievers PID

SPDR DJ Wilshire Int’l Real Estate RWX

Sector/Industry

SPDR Consumer Discretionary XLY

SPDR Consumer Staples XLP

SPDR Healthcare XLV

SPDR Industrial XLI

PowerShares QQQ QQQ

SPDR DJIA Trust DIA

SPDR Utilities XLU

SPDR Energy XLE

SPDR Financial XLF

SPDR Homebuilders XHB

SPDR Materials XLB

SPDR Retail XRT

Vanguard U.S. REIT VNQ

Vanguard Information Technology VGT

iShares NASDAQ Biotech IBB

iShares DJ Transportation IYT

MarketVectors Semiconductor SMH

Guggenheim Zacks Sector Rotation XRO

PowerShares WilderHill Clean Energy PBW

PowerShares Water Resources PHO

PowerShares DWA Technical Leaders PDP

Style

iShares Russell 1000 IWB

iShares Russell 2000 IWM

SPDR S&P Midcap 400 MDY

SPDR SP 500 SPY

Currency

CurrencyShares EuroTrust FXE

PowerShares DB U.S. Dollar Index Bullish UUP

Inverse (Short the Market with a long position)

ProShares Short QQQ PSQ

ProShares Short SP 500 Index SH

ProShares Short Dow 30 DOG

ProShares Short 20-year Treasury TBF