Three Sector ETFs For November (XLI, XLU, XLY, XLF, XLB, XLK, SHY)

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.

I have also added ETF Replay’s ranking for each ETF plus the short duration bond ETF (NYSE:SHY). For some background on ETF Replay please visit the site or read my previous articles here and here.

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
SHY 7 8
XLB 4 5
XLE 8 6
XLF 10 10
XLI 9 9
XLK 3 1
XLP 1 3
XLU 2 7
XLV 5 4
XLY 6 2
 

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