U.S. Sector & Industry AIM Portfolio

Overview

Stats:
Funds:17
Acquired Fees:0.20%
TTM Yield:1.12%
Benchmark:SPY

Inception Date: June 8, 2020

Investment Objective

The ETF Action Sector & Industry Active Index Model (AIM) Portfolio’s primary objective is to outperform the broad U.S. Market as measured by the S&P 500. To accomplish this objective the investment committee utilizes an actively managed process that is governed and implemented using a transparent and repeatable framework.

Key Facts

  • Selection universe limited to U.S. sector and industry ETFs
  • Over/under weight positions driven by transparent, multi-faceted, and repeatable ratings process
  • Fully invested (no cash), does not use leverage or inverse funds

Philosophy

Returns across sectors and industries often diverge widely based on a number of factors including business cycle, macroeconomic environment, fundamentals, valuations, and sentiment. Following a disciplined process outlined in the methodology guide, ETF Action has created a proprietary process to track these factors in an attempt to identify sectors and industries that we believe have an outsized chance to outperform over various time frames.

All ETF Action Model Portfolios are made available to subscribers for informational purposes only and do not represent actual investments. Full terms of service, including terms of use, copyrights, and disclaimers are available here.

Performance

Performance (as of )

INDEX PERFORMANCE CALCULATED BY indxx. PAST PERFORMANCE IS NO GUARANTEE OF FUTURE PERFORMANCE. INVESTORS CANNOT INVEST DIRECTLY IN AN INDEX, THE PERFORMANCE OF AN INDEX DOES NOT REPRESENT ANY ACTUAL TRANSACTIONS AND ITS PERFORMANCE DOES NOT REFLECT THE DEDUCTION OF ANY FEES OR EXPENSES ASSOCIATED WITH ACTUAL INVESTING.

*Since Common Inception Date

Composition

Model Insights

U.S. Sector Playbook

2.22.2021

An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • Financial sector ETFs lead in net inflows for the week (+$682 million); nearly $9 billion in net inflows over last three months
  • SPY falls 0.66% over the week while only four of 11 sectors rise
  • Energy sector leading all sectors in February (XLE +17.44%)
  • Health Care sector slides into most attractive valuation relative to S&P 500 (page 8)

U.S. Sector & Industry AIM Positioning Guide

2.22.2021

U.S. Sector & Industry AIM Portfolio returned -0.44% last week, outperforming the S&P 500 by 0.22%

  • Top Performers: KBE +4.04%, XLF +2.82%, XME +2.81%
  • Bottom Performers: XBI -3.19%, XLK -1.83%, XLV -2.45%
  • Since Inception Performance: 32.65% outperforming the S&P 500 (SPY) by 8.95%

U.S. Sector & Industry AIM Portfolio: Three Months Later

2.16.2021

The U.S. Sector & Industry AIM Portfolio has outperformed SPY by 5.60% since we repositioned it three months ago, setting up for the early stages of a cyclical recovery. Today, we look at key drivers of returns and portfolio security selection, including:

  • Which sector tilts exist and why
  • How we use industry-specific ETFs to "juice" beta in opportunistic areas
  • How paring back large-cap exposure and introducing equal-weight strategies influenced the portfolio
  • Why we're holding off on a full rebalance for now

U.S. Sector Playbook

2.15.2021

An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • SPY gains 1.27% over the week Utilities, Cons. Staples, and Cons. Discretionary sectors decline (page 5)
  • Energy Select Sector SPDR Fund (XLE) leads with $636 million in net inflows (page 3)
  • Health Care moves into a more attractive valuation relative to SPY and its historical average (page 8)
  • Comm Services (XLC) showing greatest momentum of all sectors;  scored on 1-month, 3-month, and 12-month periods

U.S. Sector & Industry AIM Positioning Guide

2.15.2021

U.S. Sector & Industry AIM Portfolio returned 2.11% last week, outperforming the S&P 500 by 0.84%

  • Top Performers: XSD +8.01%, RYT +4.02%, XAR +3.28%
  • Bottom Performers: XBI -1.47%, FDIS -0.39%, XLP -0.11%
  • Since Inception Performance: 33.23% outperforming the S&P 500 (SPY) by 8.70%

U.S. Sector & Industry AIM Positioning Guide

2.8.2021

U.S. Sector & Industry AIM Portfolio returned 5.33% last week, outperforming the S&P 500 by 0.56%

  • Top Performers: XAR +9.12%, XBI +9.09%, RCD +8.17%
  • Bottom Performers: XLV +0.56%, XLP +2.61%, XSD +3.29%
  • Since Inception Performance: 30.48% outperforming the S&P 500 (SPY) by 7.51%

U.S. Sector Playbook

2.9.2021

An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • Real estate ETFs see over $1 billion in net inflows during the week
  • All 11 sectors gain as Energy leads (XLE +8.24%), Health Care lags (XLV +0.56%)
  • Materials and Health Care move into negative momentum territory
  • Tech and Consumer Discretionary sectors remain most expensive sectors based on valuations relative to historical averages and SPY

U.S. Sector Playbook

2.1.2021

An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • $444 million in net outflows for Consumer Discretionary sector ETFs
  • SPDR Retail ETF (XRT -$680 million) tops sector & industry ETFs for net outflows and leads in performance (+17.55%) due to surge in GameStop
  • All sectors declined during the week; SPY down 3.35% (page 4)
  • Momentum in Energy sector improving from one month ago (page 7)
  • Tech and Consumer Discretionary retain greatest relative valuations to historical averages and SPY (page 8)

U.S. Sector & Industry AIM Positioning Guide

1.31.2021

U.S. Sector & Industry AIM Portfolio returned -3.86% last week, underperforming the S&P 500 by 0.51%

  • Top Performers: XBI +0.21%, XLP -1.51%, XLV -2.18%
  • Bottom Performers: XSD -6.33%, XME -6.23%, KBE -5.96%
  • Since Inception Performance: 23.88% outperforming the S&P 500 (SPY) by 6.51%

U.S. Sector Playbook

1.26.2021

An overview of the U.S. Sector ETF landscape - Performance, Flows, Valuations, Earnings, & Technicals.

  • Financials lead in net inflows for third consecutive week; over $5 billion in since start of the year (page 3)
  • First Trust Dow Jones Internet Index Fund leads in net outflows (-$621 million) (page 4)
  • SPY gains 1.91% over the week while Comm Services leads (XLC +5.44%) with help from Netflix
  • Technology sector quickly losing momentum relative to broader market; energy and consumer discretionary trending upwards (page 7)

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