iQ ETF Sector Rotation Model
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FOLLOW THE MOMENTUM...with ETFs!
Sector Rotation trading strategies are popular because they can improve risk-adjusted returns and automate the investing process. Momentum investing, which is at the heart of the sector rotation strategy, seeks to invest in sectors showing the strongest performance over a specific timeframe.
Sector Rotation - with a hedge…
The iQUANT.pro ETF Sector Rotation Model selects the top 5 sectors from the following starting universe:
SHORT S&P 500
*Notice we placed an inverse ETF (S&P 500 Short) as a potential hedge against down markets.
Start with 11 sector ETFs and the inverse S&P 500 ETF.
Kick out any constituent of the starting universe that is below its 9-month simple moving average
Rank by long-term price momentum and select the top 5 ETFs
If five ETFs do not make the cut, the remaining spots are filled by a Treasury Bill ETF