Phillip ETF Model Portfolio – November 2017 December 7, 2017

NOVEMBER 2017 PORTFOLIO PERFORMANCE (%)

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Highlights

  • A Tax Reform Bill was passed by Senate towards the end of November and it will need to reconcile with the Congress version of the Tax Bill before President Trump can sign it into legislation. Markets are already starting to price in the positive impact the tax reform will have on Corporate America.
  • The nomination of Jerome Powell should spell stability in the transition for the Chairman of the Federal Reserve. Powell is widely seen as a continuity to Janet Yellen, with only a slightly different view on the regulation on the financial sector. We opined that his views on a lighter regulation for financial sector should provide a further tailwind for the U.S. economy.

Portfolio Changes

As global economies improve, we believe there is an increasing risk of inflation. This is not merely asset, but goods and service inflation. This leads us to include into our asset allocation strategy, a commodity component in our asset mix. We have revised our weightage downwards on Gold as the Commodity ETFs selected will also have some exposure to gold.Β

NOVEMBER 2017 ETF PERFORMANCE (%)

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*Performance return is based on total return with dividend reinvestment. Performance calculation does not take into consideration any transactional cost or brokerage fee.

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About the author

Profile photo of Pei Sai Teng

Pei Sai Teng
Investment Analyst
Phillip Securities Research Pte Ltd

Sai Teng covers the global macro research. He has more than 6 years investment experience primarily in portfolio construction and asset allocation.He graduated with Bachelor of Science in Banking and Finance from University of London.

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