In January I added a US sector portfolio to Scott’s Investments. This hypothetical portfolio tracks the performance of a portfolio purchasing the top 1 ETF each month based on the ETF with the highest 6 month performance. For some historical backtests, please read January’s post. Please note the portfolio is hypothetical and for informational and tracking purposes, and not an investment recommendation.
The 6-month sector strategy/signal is tracked on other sites such as CXO Advisory, and I thought it would be helpful to track it in a hypothetical portfolio with a $10,000 starting value. As with the other portfolios I track, the new format will be to post the current signal/position on the portfolio page of Scott’s Investments, but the historical trades and dividend data will be tracked offline in order make the data tracking procedure more efficient. Performance metrics will typically be posted on a monthly basis once the portfolio has more history.
The nine ETFs used as the pool of investments are below:
|XLB||Materials Select Sector SPDR|
|XLE||Energy Select Sector SPDR|
|XLF||Financial Select Sector SPDR|
|XLI||Industrial Select Sector SPDR|
|XLK||Technology Select Sector SPDR|
|XLP||Consumer Staples Select Sector SPDR|
|XLU||Utilities Select Sector SPDR|
|XLV||Health Care Select Sector SPDR|
|XLY||Consumer Discret Select Sector SPDR|
Using performance data from Finviz, the portfolio ranks 6 months returns of the ETFs listed above and purchases the ETF with the highest 6 month performance at the end of the month. Last month the portfolio purchased XLV and this position was told today at the end of February. The proceeds were used to purchase 336 shares of XLK. Since inception (January 1st 2012) the portfolio is down over 2.5%, primarily due to the under-performance of XLU in January.
Disclosure: No current positions in stocks mentioned