This strategy invests in the sectors that are the cheapest relative to their historical valuations. The selection universe consists of 10 sector ETFs. Each sector is ranked using a composite of value metrics and the top 5 ETFS are added to the portfolio on each rebalancing date. In addition, a trend following system is used to eliminate ETFs that are in a downtrend and to raise cash when the majority of the sectors are in a downtrend simultaneously.
Since 2006, this portfolio has returned 9.1% per year, underperforming its benchmark by 0.9%
Year | Portfolio | S&P 500 |
2007 | 11.2% | 5.1% |
2008 | -12.0% | -36.8% |
2009 | 33.2% | 26.4% |
2010 | 13.8% | 15.1% |
2011 | -10.3% | 1.9% |
Year | Portfolio | S&P 500 |
2012 | 15.2% | 16.0% |
2013 | 36.3% | 32.3% |
2014 | 16.1% | 13.5% |
2015 | -9.8% | 1.2% |
2016 | 20.2% | 12.0% |
Year | Portfolio | S&P 500 |
2017 | 17.3% | 21.7% |
2018 | -8.0% | -4.6% |
2019 | 14.2% | 31.2% |
2020 | -4.7% | 18.3% |
2021 YTD | 17.3% | 17.1% |