The Island Light Sector rotation strategy was updated for March as part of our regular monthly rebalancing.
The strategy employs an advanced algorithm that seeks to capture market momentum in an optimized portfolio of US sectors, rebalanced monthly.
For this month, we increased our exposure to the US materials and utilities sectors, reduced allocations to financials and eliminated our investment in technology.
We have no investment in the consumer discretionary, consumer staples, energy, healthcare, and industrials sectors.
Relative to the S&P 500 sector weights, we are overweight to utilities and materials.
The following table reflects the performance of our strategy, the S&P and the 9 sector ETFs that comprise our investment universe, through February 27, 2015:
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The investments discussed are held in client accounts as of March 10, 2015. These investments may or may not be currently held in client accounts. The reader should not assume that any investments identified were or will be profitable or that any investment recommendations or investment decisions we make in the future will be profitable.
The post Why we upped exposure to utilities and materials appeared first on Smarter InvestingCovestor Ltd. is a registered investment advisor. Covestor licenses investment strategies from its Model Managers to establish investment models. The commentary here is provided as general and impersonal information and should not be construed as recommendations or advice. Information from Model Managers and third-party sources deemed to be reliable but not guaranteed. Past performance is no guarantee of future results. Transaction histories for Covestor models available upon request. Additional important disclosures available at http://site.covestor.com/help/disclosures.