Tactical Portfolio Update – US Sectors
Health Care & Consumer Discretionary are the Places to Be
The ETF Radar Tactical portfolio is a model portfolio that invests in five ETFs based on my tactical ETF rankings system. The portfolio trades at the end of each month. The holdings for July include SPDR-Health Care (XLV), SPDR-Consumer Discretionary (XLY), SPDR-Utilities (XLU), iShares S&P MidCap 400 Growth (IJK) & iShares MSCI Japan (EWJ). Aside from this past week, the markets in general were trading in lower territory. When stocks are in a lower trend, investors typically go for more defensive positions such as health care stocks which are usually not as affected as other sectors.
In addition, the Consumer Discretionary sector has been led up by companies such as McDonald’s and Amazon.
Based on the rankings SPDR-Health Care (XLV) is the ETF of the month. It tracks the Health Care holdings of the S&P 500 index. It has an expense ratio of 0.20% and an average daily trading volume of 9 million shares.
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com