Joined Nov 11, 2007
1,458 Blog Posts

Fidelity Sector Fund Rotational System April Results

In April the system returned 0.5% vs. a $SPY return of 1.9%. The system was 33% in cash for one day and missed part of the bounce from the 50 day average. Also, the defensive funds have been increasingly moving up in the ranks. These do not tend to move as much as the non-defensive funds.

Year-to-date the system is up 13% vs. a $SPY return of 12.1%.

The system is currently long FSUTX (Utilities), FBMPX (Multimedia), and FBIOX (Biotechnology).

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  1. jimmy_two_times

    Nice work. My 6 ETF system was up 2.47%. My system doesn’t try top beat just tries to match market returns to the upside, then beat on the sell offs. Month to month it can vary, but over time it does protect capital in down drafts.

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    • bpguns

      Care to elaborate? I’m looking at implementing an ETF rotation strategy and would be interested in hearing some of the details of your system. I was thinking something simple like the trailing 6-month total return, similar to the ETF momo rotation at CXO advisory. Thanks

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      • Woodshedder

        Got a link to the CXO strategy you are interested in?

        I’m getting ready to start on some absolute momentum stuff. Is that what you mean by total return?

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  2. bpguns


    I think you need an account, but you can just make a free trial account to get the information, that’s what I did. I’m 100% sure you’ll be able to build a much better system, theirs is very very simple.

    They look at 8 ETFs:
    Commodities – DBC
    Emg Mkts – EEM
    Intl Equity – EFA
    Gold – GLD
    Russell 2000 – IWM
    Russell 1000 – IWB
    Real Estate – RWR
    Long Term Treasuries – TLT
    and Cash

    It looks like they just rank them all based on 5-month total return (assuming they do price appreciation + dividends). Then buy the top 1, 2, or 3 depending on how you value volatility vs. returns.

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