Gathering unbiased information on the sector rotation of the U.S. economy can be a time consuming and tedious task. That’s why ETFnext was developed to be the simplest and most effective sector rotation tool currently available for ETF investors.
ETFnext was designed for daily use. It takes only a minute or two to review changes to the stock market rotation. All results are available with a single click. There is no need to run complex screens with many options and parameters.
ETFnext works well with mobile devices. Simply open up ETFnext.com in the web browser of your smartphone or tablet, and you’ll see the same information as you would see using your desktop or laptop.
A technical analysis screen is applied to a comprehensive list of sector ETFs daily, after the market close. The screen identifies investments that are trending higher while above their respective 100 day moving averages.
To reduce redundancy when multiple ETFs are available for tracking a given equity sector or subsector, the most liquid ETF is selected with the highest average volume.
Next, the funds are ranked by their three month return, which is also referred to as the Rate-of-Change indicator, to evaluate the relative momentum of all sector ETFs. The resulting ranking shows the most bullish ETF investments in the current market environment.
Research has shown that the primary determinants of investment performance are stock selection (10% contribution), sector selection (30% contribution) and the broad market return (60% contribution). So, even if you do not invest in ETFs, understanding the sector rotation can help you better manage investment risks and increase returns.
Both ETFnext.com and FidelitySignal.com were developed by Axiomix, Inc. and share the same technology platform, but focus on different type of investments (ETFs vs. mutual funds). Axiomix, Inc. is a research firm that provides independent stock market intelligence and asset allocation models.