Global Sector Rotation

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Global Sector Rotation 2017-04-20T02:21:13+00:00

Project Description

The Global Sector Rotation Strategy (GSRS) is a good diversification to our other strategies. The strategy invests on a monthly basis in the top two performing global sectors. Global sectors ETFs normally present well-defined long lasting up and down trends which makes them fit well in rotation strategies. Another advantage of the Sector Rotation Strategy is, that even in sideways going makets you still find outperforming sectors.

The “low volatility” sector rotation strategy has only half of the volatility of normal global market ETFs like SPY (S&P 500) or FEZ (Euro Stoxx 50). This strategy has only a slightly higher volatility than our Bond Rotation Strategy BRS and is a good choice for cautious investors. Another advantage of this strategy is that it invests normally in very liquid ETFs like for example IXJ (Global Healthcare Sector).

 

 

Research is undertaken to ensure that the diversified mix of asset classes is appropriate for the desired level of risk. Specific ETFs are screened and chosen to best represent the asset class, while also maintaining low management fees and index tracking error.

 

 

The 27 Sector ETFs and 5 bond ETFs are:

CUT – Guggenheim Beacon Global Timber EquitiesKXI– iShares S&P Global Consumer Staples
EXI – iShares S&P Global IndustrialsLIT– Global X Solactive Lithium Index
FAN– First Trust ISE Global Wind EnergyMOO– Market Vectors Agribusiness
GEX– Market Vectors Global Alternative EnergyNLR– Market Vectors Nuclear Energy
GNR– SPDR S&P Global Natural ResourcesPIO– PowerShares Palisades Global Water
GURU – Global X Top Guru HoldingsPKW – PowerShares Buyback Achievers
IGF– iShares S&P Global Infrastructure IndexREMX – Market Vectors Rare Earth Strategic Metals
IXC– iShares S&P Global Energy Sector IndexRWX – SPDR DJ International Real Estate
IXG– iShares S&P Global FinancialsRXI – iShares S&P Global Consumer Discret
IXJ– iShares S&P Global Healthcare SectorSEA– Guggenheim Delta Global Shipping Index
IXN– iShares S&P Global TechnologySLX– Market Vectors Global Steel
IXP– iShares S&P Global Telecom SectorSOIL– GlobalX Solactive Fertilizers-Potash
KOL– Market Vectors Global CoalTAN– Guggenheim MAC Global Solar Energy
FPX– First Trust US IPO ETF
 JXI – iShares Global Utilities

During market corrections the strategy will invest in:

CWB – SPDR Barclays Convertible Bond

TMF– Direxion Daily 20+ Yreasury Bull 3X ETF

TLH  – iShares Barclays 10-Year Treasury (9-11yr)

TLT– iShares Barclays Long-Term Trsry (15-18yr)

SHY (cash) – Barclays Low Duration Treasury (2-yr)

 

 

Risk and Performance Profile

Risk Score:?
Performance:
3 Months12 MonthsSince Inception
Return
CAGR
Volatility
DrawDown
Sharpe
Annual Performance vs. Benchmark

The Global Sector Rotation Strategy (GSRS) is a good diversification to our other strategies. The strategy invests on a monthly basis in the top two performing global sectors. Global sectors ETFs normally present well-marked long lasting up and down trends which makes them fit well in rotation strategies. Another advantage of the Sector Rotation Strategy is, that even in sideways going makets you still find outperforming sectors.

The “low volatility” sector rotation strategy has only half of the volatility of normal global market ETFs like SPY (S&P 500) or FEZ (Euro Stoxx 50). This strategy has only a slightly higher volatility than our Bond Rotation Strategy BRS and is a good choice for cautious investors. Another advantage of this strategy is that it invests normally in very liquid ETFs like for example IXJ (Global Healthcare Sector).

 

The 27 Sector ETFs and 5 bond ETFs are:

CUT – Guggenheim Beacon Global Timber EquitiesKXI– iShares S&P Global Consumer Staples
EXI – iShares S&P Global IndustrialsLIT– Global X Solactive Lithium Index
FAN– First Trust ISE Global Wind EnergyMOO– Market Vectors Agribusiness
GEX– Market Vectors Global Alternative EnergyNLR– Market Vectors Nuclear Energy
GNR– SPDR S&P Global Natural ResourcesPIO– PowerShares Palisades Global Water
GURU – Global X Top Guru HoldingsPKW – PowerShares Buyback Achievers
IGF– iShares S&P Global Infrastructure IndexREMX – Market Vectors Rare Earth Strategic Metals
IXC– iShares S&P Global Energy Sector IndexRWX – SPDR DJ International Real Estate
IXG– iShares S&P Global FinancialsRXI – iShares S&P Global Consumer Discret
IXJ– iShares S&P Global Healthcare SectorSEA– Guggenheim Delta Global Shipping Index
IXN– iShares S&P Global TechnologySLX– Market Vectors Global Steel
IXP– iShares S&P Global Telecom SectorSOIL– GlobalX Solactive Fertilizers-Potash
KOL– Market Vectors Global CoalTAN– Guggenheim MAC Global Solar Energy

During market corrections the strategy will invest in:

CWB – SPDR Barclays Convertible Bond
TMF– Direxion Daily 20+ Yreasury Bull 3X ETF
TLH  – iShares Barclays 10-Year Treasury (9-11yr)
TLT– iShares Barclays Long-Term Trsry (15-18yr)
SHY (cash) – Barclays Low Duration Treasury (2-yr)