Global sector ETF performance update for the close of July is below. Note that all of the ETFs were below the 200 day moving average at the end of June which in my preferred strategy would exclude them for consideration of any long position. However, this month 4 of the 10 ETFs are above the 200 day SMA. The top three at the end of July based on momentum are EXI (Industrials), IXP (telecom), and KXI (staples). EXI and KXI were 2 of last month's top 3, IXP has replaced RXI (discretionary). I have previously discussed some possible strategies using this data here as well as some more active trading strategies.
The momentum strategy that an investor could implement would be to purchase the best returning ETF(s) over the trailing 3, 6, and 12 months (sum). This strategy has been written about extensively by Mebane Faber, author of The Ivy Portfolio: How to Invest Like the Top Endowments and Avoid Bear Markets.
Another strategy would involve purchasing the top performing ETFs based on 6 month (half year) returns and only purchase ETFs when they are also above their 200 day simple moving average.
The data source for the information below is Finviz.
|Ticker||Company||Performance (Quarter)||Half Year||Year||Sum||200-Day SMA|
|EXI||iShares S&P Global Industrials||-5.47%||7.72%||21.86%||24.11%||2.95%|
|IXC||iShares S&P Global Energy||-9.28%||-2.69%||3.38%||-8.59%||-5.57%|
|IXG||iShares S&P Global Financials||-3.90%||4.23%||9.11%||9.44%||-0.51%|
|IXJ||iShares S&P Global Healthcare||-5.66%||-7.36%||3.62%||-9.40%||-5.44%|
|IXN||iShares S&P Global Technology||-8.16%||3.20%||10.89%||5.93%||-1.39%|
|IXP||iShares S&P Global Telecommunications||4.90%||7.03%||9.37%||21.30%||4.31%|
|JXI||iShares S&P Global Utilities||-0.50%||-1.13%||2.93%||1.30%||-0.80%|
|KXI||iShares S&P Global Consumer Staples||-0.28%||3.60%||15.31%||18.63%||1.82%|
|MXI||iShares S&P Global Materials||-5.07%||4.86%||14.87%||14.66%||-1.39%|
|RXI||iShares S&P Global Cons Discretionary||-6.23%||6.51%||16.97%||17.25%||2.09%|
|ETF Replay Ranking||6 month return / 3 month return / 3 month volatility||3 month return / 20 day ret/ 20 day volatility|