There is a change to the iShares Sector Rotation Model this week.
There is a change to the iShares Sector Rotation Model (ISHRSECT) this week: buy the iShares US Digital Infrastructure and Real Estate ETF (IDGT). 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.
IDGT was added because it reversed up on its relative strength versus IYY demonstrating short-term relative strength against the benchmark. IDGT currently has a near-perfect 5.83 fund score, which is 2.78 points better than the average for all technology and communications funds, and a positive 2.48 score direction. On its default chart, IDGT returned to a buy signal last week when it broke a double top at $102, a new all-time high for the fund. Year-to-date (through 4/8) IDGT has gained 25.69% on a price return basis.
In addition to IDGT, ISHRSECT also has exposure to biotech, technology, natural resources, semiconductors, basic materials, energy, financials, and telecom. Year-to-date, ISHRSECT has gained 4.65%, outperforming the S&P 500 by more than 5.5%.
