October's U.S. and Global Sector ETF portfolios have been updated at Scott's Investments. 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 XLV (Health Care), XLP (Consumer Staples) and XLU (Utilities). Interestingly, they were the only 3 ETFs also above their 200 day moving average at month end. This month only 1 ETF in the list of 9 is above its 200 day moving average at month end - XLU. Therefore, the strategy is selling XLV and XLP and keeping the proceeds in cash.
This strategy is tracked as a hypothetical portfolio with a starting balance of $10,000. Year to date the U.S. Sector portfolio is down .22%, including dividends. Since the strategy updates monthly, it may not always catch the beginning of a move but it is a long-term approach for capturing large trends.
Global Sector
- Buy the top 3-6-12 or 6 month performers and hold for one month the rebalance at month end based on the new momentum leaders. 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
.| US SECTOR | ||||||
| Symbol | Name | Quarterly | 6 Month | Year | Average | 200 Day SMA |
| XLB | Materials Select Sector SPDR | -25.72% | -26.13% | -9.62% | -20.49% | -21.50% |
| XLE | Energy Select Sector SPDR | -22.77% | -26.29% | 4.59% | -14.82% | -19.00% |
| XLF | Financial Select Sector SPDR | -24.15% | -28.03% | -17.41% | -23.20% | -22.11% |
| XLI | Industrial Select Sector SPDR | -22.49% | -22.25% | -4.79% | -16.51% | -16.68% |
| XLK | Technology Select Sector SPDR | -9.30% | -8.56% | 4.01% | -4.62% | -6.90% |
| XLP | Consumer Staples Select Sector SPDR | -5.09% | 0.03% | 9.24% | 1.39% | -0.96% |
| XLU | Utilities Select Sector SPDR | 0.24% | 6.83% | 11.14% | 6.07% | 5.19% |
| XLV | Health Care Select Sector SPDR | -11.29% | -3.67% | 6.16% | -2.93% | -4.05% |
| XLY | Consumer Discret Select Sector SPDR | -14.73% | -10.68% | 5.93% | -6.49% | -8.80% |
| Global Sector | ||||||
| Symbol | Name | Quarterly | 6 Month | Year | Average | 200 Day SMA |
| EXI | iShares S&P Global Industrials | -24.08% | -23.76% | -8.43% | -18.76% | -18.62% |
| IXC | iShares S&P Global Energy | -21.32% | -25.17% | -1.75% | -16.08% | -17.77% |
| IXG | iShares S&P Global Financials | -26.11% | -27.82% | -20.11% | -24.68% | -22.40% |
| IXJ | iShares S&P Global Healthcare | -11.56% | -3.21% | 4.36% | -3.47% | -4.43% |
| IXN | iShares S&P Global Technology | -11.83% | -12.24% | -1.07% | -8.38% | -10.22% |
| IXP | iShares S&P Global Telecommunications | -11.19% | -10.02% | -1.67% | -7.63% | -6.74% |
| JXI | iShares S&P Global Utilities | -10.78% | -7.61% | -5.22% | -7.87% | -6.72% |
| KXI | iShares S&P Global Consumer Staples | -7.52% | -1.81% | 5.02% | -1.44% | -2.74% |
| MXI | iShares S&P Global Materials | -27.62% | -27.87% | -14.59% | -23.36% | -23.58% |
| RXI | iShares S&P Global Cons Discretionary | -18.28% | -13.62% | -1.51% | -11.14% | -12.24% |
Disclaimer: No current positions in stocks mentioned. Please note that Scott's Investments is not a financial adviser. Please consult your own investment adviser and do your own due diligence before making any investment decisions. Please read the full disclaimer at the bottom of Scott's Investments.
