Nasdaq Dorsey Wright

State Street Focus Fund

Published: December 30, 2020

This content is for informational purposes only. This should not be construed as solicitation. The general public should consult their financial advisor for additional information related to investment decisions.

There are no changes this week. Today we review the model methodology for the State Street Targeted Sector Rotation Model (SSTARGETSECTOR).

There are no changes to report this morning.

As of January 13, we will no longer be publishing the weekly State Street ETF report. With that in mind, over the next two weeks, we will be reviewing the methodologies underlying each of the four SSGA strategies so that you can continue running them on your own going forward if you wish. Last week, we discussed the State Street Sector Rotation Model SSTREET, which can be accessed here. Today, we’ll review the State Street Targeted Sector Rotation Model SSTARGETSECTOR.

The SSTARGETSECTOR model uses utilizes a relative strength (RS) matrix to determine its holdings. The strongest ETFs are held in the model until they fall significantly out of favor versus the other members. The model is evaluated weekly and will always own five positions. Upon a change, the model holdings will rebalance so each position is equally-weighted at 20%. Currently, the model owns technology XNTK, regional banking KRE, semiconductors XSD, homebuilders XHB, and software & services XSW. Year-to-date, the SSTARGETSECTOR is up 28.19%, outperforming the S&P 500 Index SPX by 12.83%.

Model Rules

State Street US‐sector ETFs are the universe used.
Remains 100% invested.
State Street US‐sector ETFs are compared to each other to determine inclusion using a 3.25% Relative Strength matrix.
The top five ETFs within the model universe are bought and are only sold when they fall sufficiently out of favor versus the other potential ETFs on a Relative Strength basis.
A new ETF is only added when one ETF falls out of favor.
Upon a change, if any one position is more than 27% or less than 13%, the change is made, and all positions are rebalanced back to 20% each. If these collars are not breached, then the change is made using a replacement method.

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DISCLOSURE

**Unless otherwise stated, the performance numbers herein are based on price returns and do not include dividends or all transaction costs. Past performance is not indicative of future results. Potential for profits is accompanied by possibility of loss. StateStreet Global Advisors (SsgA) has arranged with Dorsey Wright to provide this specialized ETF page on SsgA sponsored products. The Point & Figure analysis, models and resulting rankings, including any information, data or commentary included herein (the “ETF Data”), are created and provided solely by Dorsey, Wright & Associates. Such ETF Data should not be considered an offer to purchase or sell, or a solicitation of an offer to buy or purchase any security. ETF Data and other materials appearing on this website are believed to be obtained from reliable sources, but neither SsgA nor Dorsey Wright can guarantee and are not responsible for their accuracy, timeliness, completeness, or suitability for use. The examples presented do not take into consideration commissions, tax implications, or other transactions costs. Neither Dorsey, Wright nor SsgA through this ETF page provide investment, legal or tax advice or recommendations regarding any security, fund or market. As the investment professional making the final decision with respect to allocations, including any related suitability, fiduciary or other legal obligation, please remember to adhere to all applicable laws, regulations, and rules including NASD Rules 2090 and 2111. You alone will bear the sole responsibility of evaluating the merits and risks associated with the use of ETF Data before making any decisions based on the ETF Data. You agree not to hold SsgA or Dorsey, Wright liable for any possible claim for damages arising from any decision you make based on the ETF Data. The percentage of the portfolio devoted to any ETF is at the sole discretion of the financial advisor or the customer, and not Dorsey, Wright & Associates or SsgA. If you are not familiar with the Point & Figure methodology, we suggest you read “Point & Figure Charting, 4th Edition” by Thomas J. Dorsey and visit the PnF University at www.dorseywright.com. If you are not familiar with the SsgA products, or Exchange Traded Funds (ETFs), we suggest you visit www.ssgafunds.com.