US and Global Sector ETF Portfolios For March (XLB, XLE, XLI, EXI, IXC, MXI)

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March 2, 2011 3:24pm NYSE:EXI NYSE:IXC

Please see the right hand side of Scott’s Investments for the March update to the US and Global Sector ETF portfolios. I track the performance of each month’s portfolio as well as previous


 months’ performance. A summary of the data is listed below, including the percent each ETF is above/below the 200 day moving average.  

US Sector

Last month the top 3 US sector performers based on the sum of the quarterly, half year, and annual returns were materials (NYSE:XLB), energy (NYSE:XLE), and industrial (NYSE:XLI).  This month all of the sector ETFs are above their 200 day moving average which was also the case last month. The top 3 based on momentum this month are the same, XLB, XLE, and XLI.

I have improved the way the performance of the sector momentum strategies are tracked.  The strategies are tracked as a hypothetical portfolio with a starting balance of $10,000. Year to date the US Sector portfolio is up 4.75%.

Global Sector

Last month the top 3 Global sector performers based on the sum of the quarterly, half year, and annual returns were  industrials (NYSE:EXI), energy (NYSE:IXC), and materials (NYSE:MXI).  This month all of the sector ETFs are above their 200 day moving average which was also the case last month. The top 3 based on momentum this month are the same, EXI, IXC, and MXI.

As stated above the strategies are tracked as a hypothetical portfolio with a starting balance of $10,000. Year to date the Global Sector portfolio is up 2.32%.

Potential strategies an investor could employ would be the following:
  1.  

    • Buy the top 3-6-12 or 6 month performers and hold for one month. Or, buy the top performer based on the 6 month performance.
    • Buy the top performers only if they are also above the 200 day moving average.
    • Buy any ETF which is above the 200 day moving average, sell if it drops below the 200 day average. Update once per month
    • Trade the top 3 momentum performers using a more detailed trading plan such as one I detailed here.
    •  

  2.   

The strategy used for the US and Global Sector ETF portfolios is to buy the top 3 ETFs based on the average of their 3, 6, and 12 month returns. The top 3 momentum ETFs must also be above their 200 day simple moving average. The portfolio is updated once per month, at the end of the month.

For some additional background on the strategy please click here and/or check out Mebane Faber’s The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.

The data source for the information below is Finviz.
US Sector 
 

 

Ticker Company Free Trend Analysis Perform-ance (Quarter) Half Year Year Avg Return 200-Day SMA
(XLB) Materials Select Sector SPDR Here 14.08% 29.33% 27.50% 23.64% 17.28%
(XLE) Energy Select Sector SPDR Here 26.21% 52.12% 40.50% 39.61% 31.66%
(XLF) Financial Select Sector SPDR Here 17.26% 23.44% 15.41% 18.70% 12.48%
(XLI) Industrial Select Sector SPDR Here 13.77% 30.09% 28.60% 24.15% 16.33%
(XLK) Technology Select Sector SPDR Here 9.93% 27.14% 22.17% 19.75% 13.57%
(XLP) Consumer Staples Select Sector SPDR Here 5.20% 13.13% 11.73% 10.02% 7.43%
(XLU) Utilities Select Sector SPDR Here 5.28% 5.42% 12.23% 7.64% 5.53%
(XLV) Health Care Select Sector SPDR Here 7.39% 15.52% 4.64% 9.18% 8.29%
(XLY) Consumer Discret Select Sector SPDR Here 9.17% 29.60% 28.71% 22.49% 15.54%
Global Sector
 

 

Ticker Company Free Trend Analysis Perfor-mance (Quarter) Half Year Year Average Return 200-Day SMA
(EXI) iShares S&P Global Industrials Here 13.80% 30.36% 28.22% 24.13% 16.58%
(IXC) iShares S&P Global Energy Here 23.23% 42.86% 31.55% 32.55% 26.31%
(IXG) iShares S&P Global Financials Here 16.38% 21.57% 16.30% 18.08% 13.33%
(IXJ) iShares S&P Global Healthcare Here 6.87% 14.73% 6.09% 9.23% 8.44%
(IXN) iShares S&P Global Technology Here 10.11% 27.82% 19.20% 19.04% 13.43%
(IXP) iShares S&P Global Telecommunications Here 6.47% 14.88% 23.59% 14.98% 10.27%
(JXI) iShares S&P Global Utilities Here 8.22% 9.45% 10.21% 9.29% 7.97%
(KXI) iShares S&P Global Consumer Staples Here 3.65% 12.31% 12.41% 9.46% 7.03%
(MXI) iShares S&P Global Materials Here 11.47% 30.58% 27.92% 23.32% 16.85%
(RXI) iShares S&P Global Cons Discretionary Here 8.17% 28.51% 28.86% 21.85% 15.05%
Written By Scott’s Investments   Disclosure: No Positions

Scott’s Investments focuses on several different ETF portfolio strategies ranging from Basic, Individual, Country, US Sector, and Global Sector ETF portfolios.


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