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U.S. Sector ETF Rotation

A systematic approach to relative strength can help investors identify major shifts in the market
The strategy utilizes analysis of both a long term and an intermediate term relative strength measurement, providing for an unemotional an objective approach. By investing in the best performing sectors and avoiding the worst performing, investors can maximize their growth during positive market environments. In investing, it is not only what you do own but also what you don’t own that determines investment success.
  • The screen examines over 20 different sector specific SPDRs and iShares and then selects the top three scoring ETFs for the Model which is rebalanced monthly
  • The basic idea behind a sector rotation strategy is that the economy operates in cycles and at any given time some sectors of the market will be up while others will be down.

From: $208.25 / month

Clear selection






Model Inception Date:12/31/2002Data as of01/31/2017
ModelBenchmark
Total Return:528.9%240.9%

Compound Annual Growth (CAGR):14.0%9.1%
Sharpe Ratio:0.780.44
MAR Ratio: 0.710.16
Correlation to benchmark:.49
Winning Period %:64.5%
Maximum Drawdown:-19.9%-55.2%
Volatility:15.7%18.9%
Best Monthly Period:11.87%
Worst Monthly Period:-9.80%

Exchange Traded FundSymbol
First Trust DJ Internet IndexFDN
iShares Nasdaq Biotechnology IndexIBB
iShares S&P N.A. Natural ResourcesIGE
iShares S&P Technology Index IGM
iShares DJ U.S. PharmaceuticalsIHE
iShares DJ U.S. Energy Sector IYE
iShares Dow Jones TransportsIYT
iShares Dow Jones TelecommIYX
PowerShares Aerospace & DefensePPA
S&P HomebuildersXHB
U.S. Sector Materials SPDRXLB
U.S. Energy Sector SPDRXLE
U.S. Financial Sector SPDRXLF
U.S. Industrial Sector SPDRXLI
U.S. Technology Sector SPDRXLK
U.S. Consumer Staples SPDRXLP
U.S. Utilities Sector SPDRXLU
U.S. Healthcare Sector SPDRXLV
U.S. Consumer Discretion Sector SPDRXLY
SPDR S&P Metal and MiningXME
SPDR U.S. Retail IndustryXRT
-1X ProShares Short S&P 500 IndexSH
Barclays Low Duration Treasury (2-yr)SHY
iShares iBoxx Invest Grade Bond (7-8yr)LQD

How do our investment strategies compare?

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