U.S. Sector & Industry AIM Portfolio

Model Portfolios

Overview

Stats:
Funds:17
Acquired Fees:0.22%
TTM Yield:0.93%
Benchmark:SPY
Links:
Methodology
Positioning Guide
Launch in Terminal

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

5.10.2021

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

  • Financials top weekly inflows again with $1.4 billion
  • Over last year, only three sectors have seen net outflows: Consumer Staples, Utilities, & Health Care
  • Materials best performing sector over past month, up 11.61%
  • First Trust Nasdaq Semiconductor ETF (FTXL) worst performer over past month, down 7.56%

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U.S. Sector & Industry AIM Positioning Guide

5.9.2021

U.S. Sector & Industry AIM Portfolio returned +1.64% last week, outperforming the S&P 500 by 0.48%

  • Top Performers: XME +13.05%, XLB +5.82%, XHB +5.35%
  • Bottom Performers: XBI -6.50%, XSD -1.15%, XAR -0.95%
  • Since Inception Performance: 42.81% outperforming the S&P 500 (SPY) by 8.49%

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U.S. Sector Playbook

4.26.2021

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

  • Large net inflows into the health care sector over the week, particularly biotech (XBI +$435 million)
  • Tech (XLK +7.44%) leading all sectors in April after finishing last in March
  • Health care and real estate sectors still sitting at overbought technical levels
  • Gross and net margins increasing for the tech sector over the past several months

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U.S. Sector & Industry AIM Positioning Guide

4.25.2021

U.S. Sector & Industry AIM Portfolio returned +0.26% last week, outperforming the S&P 500 by 0.38%

  • Top Performers: XBI +2.09%, XLV +1.81%, PAVE +1.05%
  • Bottom Performers: FDIS -0.82%, XLK -0.42%, XME -0.41%
  • Since Inception Performance: 41.09% outperforming the S&P 500 (SPY) by 8.48%

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U.S. Sector Playbook

4.19.2021

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

  • Energy leads with $505 million in net inflows while Consumer Staples sees $303 million out
  • 10 of 11 sectors gain while SPY finishes the week up 1.40% and in overbought technical territory
  • Tech, industrials, and financials displaying strong momentum (page 7)
  • Real estate, consumer staples, and health care most discounted relative to SPY (page 8)

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U.S. Sector & Industry AIM Positioning Guide

4.18.2021

U.S. Sector & Industry AIM Portfolio returned +1.19% last week, underperforming the S&P 500 by 0.21%

  • Top Performers: XME +4.08%, XLB +3.26%, XLV +2.99%
  • Bottom Performers: XSD -0.62%, XAR -0.29%, FCOM -0.14%
  • Since Inception Performance: 40.72% outperforming the S&P 500 (SPY) by 7.95%

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U.S. Sector Playbook

4.12.2021

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

  • Real Estate leads in net inflows with $1.59 billion over the past week
  • SPY gains 2.72% over the week while energy is lone sector to decline (XLE -4.21%)
  • Tech and Communication Services sectors looking to regain momentum leadership (page 7)
  • Gross and net margins improve ~0.35% since 2 months ago for the tech sector (page 9)

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U.S. Sector & Industry AIM Positioning Guide

4.11.2021

U.S. Sector & Industry AIM Portfolio returned +2.05% last week, underperforming the S&P 500 by 0.67%

  • Top Performers: XLK +4.64%, FDIS +3.66%, RCD +3.43%
  • Bottom Performers: XBI -5.40%, XME -2.13%, XSD -0.30%
  • Since Inception Performance: 39.07% outperforming the S&P 500 (SPY) by 8.13%

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U.S. Sector Playbook

4.5.2021

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

  • Financial ETFs yet again lead in net inflows with $1.148 billion over the week; now over $15 billion has flowed into the sector over last 3 months
  • 7 of 11 sectors gain with Comm Services (XLC +3.17%) leading
  • Utilities lagged all sectors in February performance (XLU -6.09%) but led all sectors in March (XLU +10.55%)
  • Tech, Materials, and Consumer Discretionary still carrying greatest premiums to historical valuation levels

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AIM Portfolio Rebalance: Infrastructure Exposure Adjustment

4.5.2021

With an infrastructure bill front and center in Washington, the following changes will be made to the ETF Action U.S. Sector & Industry Active Index Model (AIM) Portfolio and the ETF Action Global Thematic AIM Portfolio. These changes will be made using closing prices as of April 8, 2021.

  • Global Thematic AIM Portfolio: New position in Defiance Next Gen Connectivity ETF (FIVG)
    • Lowers portfolio valuation multiple; particularly in disruptive tech segment
    • Increases semiconductor exposure
    • Introduces new names not currently held in the portfolio
  • U.S. Sector & Industry AIM Portfolio: New position in Global X U.S. Infrastructure Development ETF (PAVE)
    • Increased cyclical exposure from industrial and materials sectors
    • Above average tilt to mid and small-caps positioned well during current phase of recovery
    • PAVE adds new companies to portfolio exhibiting positive momentum

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