The Sector Rotation Advantage
Are you intrigued by ETFs but still haven’t put them to work in your own account?
After attending a number of great holiday parties over the last month, I’m convinced there are many of you that fall into this category.
I’m simply blown away at how many blank stares I get from otherwise smart people when I tell them I write an investment advisory service about exchange traded funds.
My usual response when I get that deer-in-headlights look is – ETFs are like mutual funds but they trade like a stock and have lower fees than mutual funds. If you’re managing your own IRA or retirement account, then you should take some time to learn about them.
If you’ve found yourself here at ETF Trading Research hoping to learn a thing or two about ETFs, then you’re in the right spot. This free newsletter is choke full of info about different ETFs, ETF fund flows, top performing ETFs, new ETFs, and just about everything else going on in the world of exchange traded funds.
Once you’re ready to put the power of ETFs to work in your portfolio, take a look at my investment advisory service – Sector ETF Trader.
It’s a monthly publication where I send out one or two ETFs with the best opportunity for immediate profit. I tell you exactly what to buy, how much to pay, and when you should sell… it doesn’t get much easier than that!
At any given time we’ll have around ten open positions. So it doesn’t take much capital to get started.
Over the last year, we recommended 15 ETFs. We currently have 11 open positions that are all showing solid gains…. Seven of them are up double digits.
We also sold 13 ETFs last year. 12 out of the 13 ETFs we sold last year for profit. The average gain was 15.3% and the typical hold time was about six months.
2013 was an interesting year. Every sector finished with a gain for the year. And just about every sector went through a period where it was the hottest sector.
This made sector rotation a powerful tool to boost returns. Obviously we didn’t catch all of these transitions, nobody can get them all.
But we did capture a chunk of profits from recommendations of technology ETFs like iShares PHLX SOX Semiconductor Sector (SOXX) and First Trust Dow Jones Internet Index (FDN).
Another big winner came from the Guggenheim Timber ETF (CUT). CUT tracks an index of timber stocks that have benefited from the resurgence of home building and the increased demand for lumber.
We’ve also used ETFs to profit from the upswing in industries like biotechnology and alternative energy. I love using ETFs on riskier industries where individual stocks are exposed to risks at the company level but the industry has bullish momentum.
The result?
It was a great year for Sector ETF Trader.
There’s no denying a sector rotation strategy with ETFs is a simple way to juice up your investment returns. And the outlook for 2014 is even better…
The bottom line is stocks aren’t likely to repeat the 30% or more gains we saw from the S&P 500 in 2013. But by using a sector rotation strategy to keep your money in the hottest sectors and industries, you can beat the market.
You can learn more about Sector ETF Trader right here…
Good Investing,
Corey Williams
Category: ETFs, Sector ETFs, What's Going On?
