Sector rotation strategies have long been popular with investors–especially those who believe they are able to spot relative opportunities in various corners of the market. Sector rotation strategies have the potential to generate significant alpha, as there are often big differences between performance of various sectors of the economy. Timing movements into strong performers and out of laggards can be a way to generate excess returns relative to a broad-based benchmark. Though many investors assume that all corners of the market generally move in unison, the reality is quite different. So far in 2012, the Consumer Discretionary SPDR (XLY) has added about 12%. The Energy SPDR (XLE) is down about 4%–a significant gap between two ETFs that both offer exposure to large cap U.S. stocks [sign up for the free ETFdb newsletter]. Sector ETF PEGs For investors looking to determine relative opportunities in sectors of the U.S. economy, examining the PEG [...] Click here to read the original article on ETFdb.com. Related Posts: All Better Now? Many ETFs Climb Back Near Pre-Recession Levels Low Cost ETFs: Complete List Of The Cheapest Exchange-Traded Funds AdvisorShares Rolls Out SectorSAM ETF (SSAM) ETFs & Sector Rotation: Large Cap, Small Cap, Or International? Sector ETFs During The Correction: XLE Slides, XLP Holds Ground
Sector rotation strategies have long been popular with investors–especially those who believe they are able to spot relative opportunities in various corners of the market. Sector rotation strategies have the potential to generate significant alpha, as there are often big differences between performance of various sectors of the economy. Timing movements into strong performers and out of laggards can be a way to generate excess returns relative to a broad-based benchmark. Though many investors assume that all corners of the market generally move in unison, the reality is quite different. So far in 2012, the Consumer Discretionary SPDR (XLY) has added about 12%. The Energy SPDR (XLE) is down about 4%–a significant gap between two ETFs that both offer exposure to large cap U.S. stocks [sign up for the free ETFdb newsletter]. Sector ETF PEGs For investors looking to determine relative opportunities in sectors of the U.S. economy, examining the PEG [...]
Click here to read the original article on ETFdb.com.
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