Tactical Portfolio Update – US Sectors
Energy is the Place to Be
QUICK FACTS
► The Energy sector remains still attractive.
► Keep XLE, IGE, IWO, XLY and XLB on your radar.
ETF Radar Tactical Portfolio (US)
| TICKER | ETF NAME | TER | AUM | WEIGHT |
| XLE | SPDR Energy | 0.20% | $7.2 billion | 20% |
| IGE | iShares S&P Natural Res | 0.48% | $1.9 billion | 20% |
| IWO | iShares Russell 2000 Growth | 0.25% | $3.6 billion | 20% |
| XLY | SPDR Consumer Discretionary | 0.20% | $2.2 billion | 20% |
| XLB | SPDR Materials | 0.20% | $1.7 billion | 20 |
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 November include SPDR Energy (XLE), iShares S&P Natural Resources (IGE), iShares Russell 2000 Growth (IWO), SPDR Consumer Discretionary (XLY) & SPDR Materials (XLB). Energy is in the top spot this month as it gained 19% in October. The main reasons for this are the continued unrest in the Middle East and expectations of increased demand over the long term, especially from countries in Asia such as China and Japan. The other top holdings include Natural Resources which tend to correlate with energy and small cap growth. All three ETFs have seen large recent inflows.
Based on the rankings SPDR Energy (XLE) is the ETF of the month. It tracks the performance of energy stocks. It has an expense ratio of 0.20% and an average daily trading volume of 24 million shares.
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com
