Global Sector ETF Spread

The ten global exchange-traded funds that make up the S&P Global 1200 are a useful tool for ETF investors since they cover 70% of world equity value. They also allow advisors and investors the flexibility to execute a smart strategy to overweight or underweight global sectors.

So far this year, the best performing global sector has been the iShares S&P Global Healthcare Sector (IXJ) which is down 7.1% while the worst performing global sector has been the iShares S&P Global Technology Sector (IXN) which is down 14.8%. This spread of over 7% is significant but a look at a shorter timeframe highlights why a rotation strategy of shifting into undervalued sectors can pay off.

For the last ten days of January, the iShares S&P Global Materials (MXI) was up 9.1% and the Consumer Discretionary Sector ETF (RXI) was up 8.3%. Meanwhile, during the same ten days, Global Healthcare was down 2.8%.

The Global Consumer Discretionary Sector ETF is up 2.24% Tuesday in mid-day trading.

The ten global sector ETFs which are listed below have anywhere from 30% to 65% invested in U.S. companies:

iShares S&P Global Consumer Discretionary
iShares S&P Global Consumer Staples (KXI)
iShares S&P Global Health Care
iShares S&P Global Energy (IXC)
iShares S&P Global Industrials (EXI)
iShares S&P Global Technology
iShares S&P Global Telecommunications (IXP)
iShares S&P Global Utilities (JXI)
iShares S&P Global Materials
iShares S&P Global Financials (IXG)

Comments

[granger:]

Good stuff, thank you

2008 Feb 13 11:42 AM