large-cap indexes, such as the S&P 500, during periods of rising U.S. The goal of the Index is to provide relative outperformance, as compared to traditional U.S. Large Cap Equities for Rising Rates Index. Seeks to track, before fees and expenses, the Nasdaq U.S. The cash index may constitute between 0% and 95% of the index, but is limited to an increase or decrease of no more than 33% per evaluation.ĮQRR - ProShares Equities for Rising Rates ETF The cash index is evaluated twice monthly. The Index can gain varying amounts of exposure to the cash index when the relative strength of more than one-third of the universe of First Trust ETFs begins to diminish relative to the cash index. When an ETF is added or removed, the index is rebalanced so each ETF position is equally weighted. ETFs are replaced when they fall sufficiently out of favor, based on their relative strength, versus the other ETFs within the universe. The relative strength analysis is conducted twice monthly. Each ETF is given a score that allows the index to objectively determine where it ranks relative to all other ETFs in the universe and five ETFs that satisfy certain trading volume and liquidity requirements are selected for inclusion. Using the DWA proprietary relative strength methodology, the ETFs are compared to each other to determine inclusion by measuring each ETF's price momentum relative to other ETFs in the universe. To construct the index, DWA begins with the universe of First Trust sector and industry ETFs and the cash index. The Index combines Dorsey, Wright & Associates' (DWA) systematic momentum approach to sector rotation and risk management via cash equivalents represented by 1- to 3-month U.S. The Index is designed to provide targeted exposure to five First Trust sector and industry based ETFs and the Nasdaq US T-Bill Index (the "cash index"). ![]() Seeks to track, before fees and expenses, the Dorsey Wright Dynamic Focus Five Index. Market cap: $3,054,277,586įVC - First Trust Dorsey Wright Dynamic Focus 5 ETF The Index is designed to provide targeted exposure to the five First Trust sector and industry based ETFs that DWA believes offer the greatest potential to outperform the other ETFs in the selection universe. Seeks to track, before fees and expenses, the Dorsey Wright Focus Five Index. Market cap: Not availableįV - First Trust Dorsey Wright Focus 5 ETF The Index is designed to take advantage of the disparate performance of the sub-indices relative to each other and to the SPTR. The weights are then modified to account for the correlation between each sub-index and the SPTR. According to this momentum strategy, the weights of sub-indices that outperform the S&P 500 Total Return Index (the “SPTR”) are increased in the Index, while the weights of sub-indices that underperform are reduced. The level of the Index is based on the relative weights of the sub-indices within the Index such weights are monitored and may be rebalanced daily based on a momentum strategy. The Index tracks the value of a notional portfolio composed of the ten sub-indices of the S&P 500 Index. This is an exchange traded note issued by the Swedish Export Credit Corporation that is linked to the performance of the SPECTRUM Large Cap U.S. Let's look at the approaches used by these ETFs.ĮEH - ELEMENTS Linked to the SPECTRUM Large Cap U.S. ![]() Pacer CFRA-Stovall Equal Weight Seasonal Rotation ETFĪdvisorShares Dorsey Wright FSM US Core ETFĪdvisorShares Dorsey Wright Alpha Equal Weight ETFĭay Hagan/Ned Davis Research Smart Sector ETFĬabana Target Leading Sector Moderate ETFĬabana Target Leading Sector Conservative ETFĬabana Target Leading Sector Aggressive ETF Sector Momentum Index ETNįirst Trust Dorsey Wright Dynamic Focus 5 ETF Here are the ETFs if you want to read some examples of the approaches taken by sector rotation ETFs: SymbolĮLEMENTS Linked to the SPECTRUM Large Cap U.S. There are a handful of ETFs that are using such a "sector rotation" strategy. The question is whether an investor can successfully buy and sell stocks in whatever the current "hot" sector is. You can monitor the most recent performance of each of the eleven sectors using our sector performance tool. It is well documented that in any given year, certain sectors of the stock market perform better than others. Every public company is categorized into one of 11 sectors - read more about sectors. There are 18 ETFs that use sector rotation as an investment strategy.
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