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Dynamic Allocations

Our Equity Portfolios
Adapt to Changing MarketsThe FundX Upgrader Funds aren’t confined to just one area of the market.  Instead, the Funds have dynamic allocations that change as market conditions change.  The changing composition of the FundX Upgrader Fund (FUNDX), our flagship equity fund, illustrates how Upgrading strategy has guided the portfolio into various market categories over the years.


2007 marked the fifth consecutive year in which foreign equity outperformed their US counterparts, and the FUNDX portfolio reflected this, with 80% of the portfolio invested overseas.  The bull market also favored stocks from developing countries, and that strength boosted emerging markets funds in our ranking system.


2008 brought a bear market that started in May and continued into March of 2009.  Although all areas of the markets suffered across the board, overseas funds were hit slightly worse than US funds.  This caused us to promptly adjust our equity portfolios into more diversified mix, including some commodities as well.


2010 saw the continuation of the market’s rebound from its low in March 2009, albeit with considerable volatility in the second quarter.  Both emerging and mature foreign market funds did well for much of 2010, but were replaced in the latter part of the year.  Small and mid-cap US stocks provided a significant boost, especially in the last six months.

Important Disclosures

  • Small- and medium-capitalization companies tend to have limited liquidity and greater price volatility than large-capitalization companies.
  • Investments in foreign securities involve greater volatility and political, economic and currency risks and differences in accounting methods.
  • Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities.
  • Non-Diversification Risk –The Underlying Funds may invest in a limited number of issuers and therefore may be considered non-diversified.
  • Short Sales Risk –The Underlying Funds may engage in short sales, which could result in such a fund’s investment performance suffering if it is required to close out a short position earlier than it had intended.
  • ETF Trading Risk – Because the funds invest in ETFs, they are subject to additional risks that do not apply to conventional mutual funds, including the risks that the market price of an ETF’s shares may trade at a discount to its net asset value ("NAV"), an active secondary trading market may not develop or be maintained, or trading may be halted by the exchange in which they trade, which may impact a Fund’s ability to sell its shares.

Diversification does not assure a profit nor protect against loss in a declining market.

Sector allocations are subject to change and should not be considered a recommendation to buy or sell any security. Click Here for standardized performance of the FundX Upgrader Fund (FUNDX).

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