International consumer discretionary stocks and municipal bonds

Our ETF newsletter is off to a great start. In the past week, our Conservative allocation has made 1.3%, though our Balanced allocation did lose 0.4%. Our highest return last week came from AFB, a municipal bond fund that returned 1.7%. A large part of that return came from a dividend that was paid out on Wednesday.

Munis are continuing to do well. That is why for our Conservative allocation this week, all we are recommending are two municipal funds. For our Balanced allocation, we are also recommending a fund that tracks dividend-paying companies in developed markets outside of North America within the international consumer discretionary sector. This sector includes companies from the following industries: airlines, apparel, automobiles and parts, entertainment, food service, home builders, housewares, leisure time, lodging, office furnishings, retail, textiles and toys/games.

We pick the mix of investments that maximizes the expected return while not exceeding a fixed maximum risk.

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