U.S. Sector ETF Portfolio Update

by: Scott's Investments

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. 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:

Symbol Name
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 XLK and this position was sold on March 30th. The proceeds were used to purchase 644 shares of XLF. Since inception (January 1st 2012) the portfolio is up 2.52%.

Disclosure: No current positions in stocks mentioned