There are changes to two iShares models this week.

There are changes to two iShares models this week. The iShares Tactical Model (ISHRTACTICAL) sold the iShares US Insurance ETF (IAK) and bought the iShares Silver Trust (SLV). IAK was sold because its rank in the model’s relative strength matrix fell below the threshold to remain a holding in the portfolio. In its place, the model added SLV as it was the highest-ranking fund in the matrix that was not already a holding in the portfolio. SLV currently has near-perfect 5.76 fund score and a positive 3.08 score direction; year-to-date (through 11/19) the fund has gained 76.42%. In addition to SLV, ISHRTACTICAL also has exposure to gold, software, the S&P 500, aerospace & defense, broker dealers & securities exchanges, industrials, and consumer discretionary. Year-to-date, ISHRTACTICAL has gained 10.69%.

The iShares Sector Rotation Model (ISHRSECT) sold the iShares US Industrial ETF (IYJ) and bought the iShares Biotechnology ETF (IBB). ISHRSECT utilizes a relative strength versus benchmark methodology which compares each fund 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. 

IYJ was sold because it reversed down on its relative strength (RS) chart versus IYY, showing short-term relative weakness against the market. IBB was added to the portfolio because it reversed up on its RS chart versus IYY, showing short-term relative strength. IBB currently has a strong 5.71 fund score and a positive 5.27 score direction. Year-to-date, the fund has gained 24.97% on a price return basis. In addition to IBB, ISHRSECT also has exposure to technology, software, semiconductors, financials, telecom, and utilities.