Global Sector ETF Portfolio for May

by: Scott's Investments

Global sector ETF performance update for the close of April is below and has also been updated as a free portfolio to track on my blog. Note that two of the ETFs - IXP (Telecom) and JXI (Utilities) were below the 200 day moving average at month end which in my preferred strategy would exclude them for consideration of any long position. The top three at the end of April are EXI (Industrials), RXI (Consumer discrectionary), MXI (Materials). These are the same top 3 at the beginning of last month. 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 Global sector 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 Free Trend Analysis Perfor-mance (Quarter) Half Year Year Sum 200-Day SMA
EXI iShares Global Industrials Here 13.96% 19.61% 47.20% 80.77% 12.33%
IXC iShares Global Energy Here 7.24% 3.29% 29.57% 40.10% 3.59%
IXG iShares Global Financials Here 8.47% 4.73% 43.52% 56.72% 2.15%
IXJ iShares Global Healthcare Here -1.80% 5.86% 28.71% 32.77% 0.87%
IXN iShares Global Technology Here 12.36% 15.25% 39.99% 67.60% 9.76%
IXP iShares Global Telecommunications Here 2.04% -0.19% 21.31% 23.16% -0.73%
JXI iShares Global Utilities Here -0.64% 1.26% 18.49% 19.11% -1.62%
KXI iShares Global Consumer Staples Here 3.89% 6.87% 36.51% 47.27% 4.88%
MXI iShares Global Materials Here 10.46% 13.69% 47.92% 72.07% 5.38%
RXI iShares Global Cons Discretionary Here 13.60% 20.00% 40.01% 73.61% 12.57%

Disclosure: No positions