
There is a change to the iShares Sector Rotation Model (ISHRSECT) this week: buy the iShares US Energy ETF (IYE).
There is a change to the iShares Sector Rotation Model ISHRSECT this week: buy the iShares US Energy ETF IYE. ISHRSECT utilizes a relative strength versus benchmark methodology which compares each of the funds in the model universe against the iShares Dow Jones US ETF IYY. Those funds showing near-term relative strength against the benchmark (i.e. are in a column of Xs) are included in the portfolio and are removed only when they show weakness relative to the benchmark. When an addition or deletion is made, the portfolio is rebalanced so each position is equally weighted. IYE was added to the portfolio because it reversed up into a column of Xs on its relative strength chart against IYY, demonstrating short-term relative strength. This is the 12th change to the model this year.
Year-to-date (through 11/25), ISHRSECT has generated a price return of 15.72%, outpacing the S&P 500 SPX by around 3.4%. The model now has exposure to nine ETFs, which are shown below.