Tactical Portfolio Update – US Sectors
A promising start
QUICK FACTS
► Utilities may outperform its sector mates.
► Real Estate stocks could rebound.
ETF Radar Tactical Portfolio (US)
| TICKER | ETF NAME | TER | AUM | WEIGHT |
| XLU | SPDR Utilities | 0.20% | $7.7 billion | 20% |
| HYG | iShares iBoxx Hi Yield Corp Bd | 0.50% | $10.6 billion | 20% |
| IYR | iShares DJ U.S. Real Estate Idx | 0.47% | $3.3 billion | 20% |
| XLP | SPDR Consumer Staples | 0.20% | $5.8 billion | 20% |
| XLB | SPDR Health Care | 0.20% | $3.4 billion | 20% |
The ETF Radar Tactical portfolio is a model portfolio that invests in five ETFs based on our tactical ETF rankings system. The portfolio trades at the end of each month. The holdings for January include SPDR Utilities (XLU), iShares iBoxx Hi Yield Corp Bond (HYG), iShares DJ U.S. Real Estate Index (IYR) and the SPDR Consumer Staples (XLP) & SPDR Health Care (XLV). Utilities is in the top spot this month as it gained 3.3% in December and 19.7% for the year. Many investors are still worried about the economy and market and typically go for defensive positions which Utilities, Consumer Staples and Health Care represent. Each of these sectors returned double digit gains last year. These are low volatility sectors that typically provide dividends regularly. The other top holdings include High Yield Bonds and Real Estate. Both ETFs are above their 200 day moving averages.
David Cohne, is Senior Advisor, Investment Strategy at ETF Radar. You can reach him directly under davidcohne [at] etfradar.com
