US Sector ETF Portfolio for May

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. For some historical backtests, please read January’s post. 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.

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Using performance data from Finviz, the portfolio ranks 6 months returns of nine SPDR sector ETFs and purchases the ETF with the highest 6 month performance at the end of the month. Last month the portfolio purchased XLF and this position was sold on April 30th. The proceeds were used to purchase XLY.

Since inception (January 1st 2012) the portfolio is down .57%.

The 9 ETF are listed below including some recent performance statistics:

Symbol Name Quarterly 6 Month Year Average 200 Day SMA
XLB Materials Select Sector SPDR -1.00% 9.33% -7.96% 0.12% 5.30%
XLE Energy Select Sector SPDR 0.06% 3.38% -8.75% -1.77% 2.84%
XLF Financial Select Sector SPDR 9.51% 17.61% -4.34% 7.59% 13.23%
XLI Industrial Select Sector SPDR 1.98% 14.02% -1.86% 4.71% 9.20%
XLK Technology Select Sector SPDR 11.23% 17.22% 13.17% 13.87% 13.42%
XLP Consumer Staples Select Sector SPDR 6.65% 11.15% 11.88% 9.89% 8.77%
XLU Utilities Select Sector SPDR 2.68% 4.57% 11.19% 6.15% 4.81%
XLV Health Care Select Sector SPDR 5.25% 13.60% 8.63% 9.16% 10.00%
XLY Consumer Discret Select Sector SPDR 10.38% 18.34% 14.20% 14.31% 14.97%