There is a change to the Invesco Sector Seven Model (POWER7) this week.
There is a change to the Invesco Sector Seven Model (POWER7) this week: sell the Invesco Nasdaq Internet ETF (PNQI) and buy the Invesco Building & Construction ETF (PKB). PNQI 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 PKB as it was the highest-ranking fund in the matrix that was not already a model holding. PKB currently has a strong 5.14 fund score, which is 0.89 points better than the average for all infrastructure funds. On its default chart, PKB has completed two consecutive buy signals and reached a new all-time high earlier this month. Year-to-date (through 1/23) PKB has gained 8% on a price return basis.
In addition to PKB, POWER7 also has exposure to aerospace & defense, clean energy, next gen connectivity, pharmaceuticals, and semiconductors. Year-to-date, POWER7 has gained 9.32%, outperforming the S&P 500 (SPX) by 8.3%.
