Please see the right hand side of Scott’s Investments for the November update to the US Sector ETFs. 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.
Last month the top 3 performers based on the sum of the quarterly, half year, and annual returns were industrials (NYSE:XLI), utilities (NYSE:XLU), and consumer discretionary (NYSE:XLY). This month all of the sector ETFs are above their 200 day moving average except financials (NYSE:XLF). The top 3 based on momentum this month are materials (NYSE:XLB), technology (NYSE:XLK), and XLY.
Potential strategies an investor could employ would be the following:
- 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.
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.
|Ticker||Company||Free Trend Analysis||Perform-ance (Quarter)||Half Year||Year||Sum||200-Day SMA|
|(XLB)||Materials Select Sector SPDR||Here||8.04%||4.98%||17.85%||30.87%||10.09%|
|(XLE)||Energy Select Sector SPDR||Here||6.80%||-1.33%||4.66%||10.13%||6.94%|
|(XLF)||Financial Select Sector SPDR||Here||-3.26%||-11.23%||-0.42%||-14.91%||-1.62%|
|(XLI)||Industrial Select Sector SPDR||Here||4.72%||-2.16%||24.97%||27.53%||7.66%|
|(XLK)||Technology Select Sector SPDR||Here||9.19%||3.44%||16.28%||28.91%||9.69%|
|(XLP)||Consumer Staples Select Sector SPDR||Here||6.16%||5.00%||12.25%||23.41%||6.77%|
|(XLU)||Utilities Select Sector SPDR||Here||3.36%||5.03%||13.29%||21.68%||6.54%|
|(XLV)||Health Care Select Sector SPDR||Here||7.63%||1.46%||11.16%||20.25%||3.46%|
|(XLY)||Consumer Discret Select Sector SPDR||Here||10.15%||-0.09%||29.58%||39.64%||10.42%|
|ETF Replay Ranking|
|6 month return / 3 month return / 3 month volatility||3 month return / 20 day ret/ 20 day volatility|
Written By Scott From Scott’s Investments (No Positions)