See the link below for a great whitepaper from Morningstar on several rules-based (quantitative) ETF strategies. They follow my general rules about investing:

1- Model – use simple rules that have been tested over time
2- Efficiency – eliminate as much drag as possible (i.e. don’t pay for product, pay for process)
3- Automate – systematize as much as possible (like hiring my firm to do it for you)

Many of you will recognize some of the ideas and techniques they use (like Simple Moving Averages). I use similar methods for a couple of my model portfolios.

The other big takeaway is their focus on ETFs. If you currently have a portfolio of mutual funds, it would likely save you a good amount of money by switching to an ETF of the same asset class or sector. Just another way to be more efficient.

Click here for the paper. (Thanks to Mebane Faber for the link/PDF!)