ETF's
Exchanged Traded Funds (ETF's) give you the flexibility and diversification you need to actively manage your money. ETF's represent shares of ownership in either fund, unit investment trusts, or depository receipts that hold portfolios of common stocks that closely track the performance and dividend yield of specific indices. Currently, ETF's track broad market sectors or international-based indices. ETF's give investors the opportunity to buy (long position) or sell (short position) an entire portfolio of stocks in a single security as easily as buying or selling one share of stock.

One of the major benefits of trading ETF's is that they are diversified. ETFs represent or track a basket of stocks or securities. Currently, there are ETF's that track major indices, broad sectors, groups, foreign countries, and even bond portfolios. Because they represent an aggregated basket of securities, your investment is diversified and not tied to the bad earnings of an individual stock.

FundSpectrum works best with securities that are correlated to the Small Cap (Russell 2000) and Technology (Nasdaq 100) indices.


Index Funds
Over the last several years, three mutual fund families have sprung up that promote the use of active management or market timing. Rydex lead the way in this field, followed by Profunds and Potomac.

These modern fund families have also added leverage to their funds so that their returns will be greater than the returns of the index they benchmark to. To allow fund investors to play both sides of the market, each of these fund families has developed a series of funds that are inversely correlated to their benchmark index. In other words, when the Russell 2000 index decreases by 10%, their Inverse Russell 2000 index fund will increase by 10%. These inverse funds allow you to "short" the market when you expect the market is going to decrease. These fund families are a great investment vehicle to be utilized with FundSpectrum's investment system.



Fund Families by Index
In the below tables you will find a performance comparison by index. All the funds are traded using our Timing Signal as of inception date of the individual funds. When the signal indicates a "Buy" you would invest in a "Long" fund. During a "Sell" signal you would either choose a "Money Market" or an "Inverse" fund. If your objective is to produce high annual returns with controlled risk, then trading these index funds would be the preferred choice.

RUSSELL 2000 - LONG
Signal	Fund	Ticker	Compounded Annual Return %	Max. Drawdown %
Buy	Mekros	RYMKX	38.1	18.5
	Small Cap	SLPIX	23.6	13.6
	Small Cap Value	SVPIX	26.2	6.7
	Small Cap Growth	SGPIX	22.2	6.9
	Small Cap Plus	POSCX	31.2	11.6
	Russell 2000	RYRHX	N/A	N/A
	Dynamic Russell 2000	RYRSX	N/A	N/A
	Ultra Small Cap	UAPIX	46.0	26.2

RUSSELL 2000 - INVERSE
Signal	Fund	Ticker	Compounded Annual Return %	Max. Drawdown %
Sell	Short Small Cap	SHPIX	14.3	10.4
	Inverse Small Cap	RYSHX	7.3	6.8
	Short Small Cap	POSSX	16.2	15.8
	Inverse Russell 2000	RYSHX	N/A	N/A
	Inverse Dynamic Russell 2000	RYIRX	N/A	N/A
	Ultra Short Small Cap	UCPIX	12.5	13.9

NASDAQ 100 - LONG
Signal	Fund	Ticker	Compounded Annual Return %	Max. Drawdown %
Buy	OTC	OTPIX	16.5	19.5
	OTC	RYOCX	28.9	20.0
	OTC	RYAOX	31.5	20.0
	OTC Plus	POTCX	36.5	24.3
	Ultra OTC	UOPIX	57.9	37.8
	Velocity 100	RYVYX	21.3	37.7

NASDAQ 100 - INVERSE
Signal	Fund	Ticker	Compounded Annual Return %	Max. Drawdown %
Sell	Short OTC	SOPIX	3.8	25.0
	Arktos	RYAIX	17.5	24.8
	Ultra Short OTC	USPIX	17.5	53.2
	Venture 100	RYVNX	31.6	47.6

ETF - LONG & SHORT
Signal	ETF	Ticker	Compounded Annual Return %	Max. Drawdown %
Buy	Russell 2000	IWM	26.5	7.0
	Nasdaq 100	QQQQ	25.9	21.0
Sell	Russell 2000	IWM	12.2	35.8
	Nasdaq 100	QQQQ	22.1	49.4