MRM screened the ETF universe to identify a diverse group of potential investments; representing markets, market segments and industry sectors. As new ETFs are introduced into the market, MRM monitors them for potential inclusion in the universe, as they mature and become more liquid.
ETFs in the universe are quantitatively ranked, based on a broad set of technical factors related to price momentum and relative strength. If a portfolio candidate scores positive on ALL criteria, it is fully-weighted; if it has NO positive scores, it is minimum-weighted.
To enhance diversification and incorporate discorrelated assets into the portfolio, ETF investments are made based on designated ranges to insure that all twelve holdings are represented. When investing in cash, MRM utilizes money market to 2-year Treasuries.