SectorSelect strategies look to provide strong capital appreciation over time by investing in securities (primarily ETF’s) within our target universe that are exhibiting the highest quality positive trends. The secondary objective is to reduce volatility and downside exposure by using cash and short term instruments tactically during severe market downturns. SectorSelect may be appropriate for those looking for a way to invest in a diversified stock portfolio that has volatility management. The strategies can be used as a core equity allocation due to diversification and expected volatility characteristics. We expect correlations to stock markets will be high most of the time, with the exception of when the strategy shifts to carrying cash and short term instruments.
There are two versions with a slightly different investment universe:
- SectorSelect: Targets the ten domestic sectors
- SectorSelect Plus: Targets the ten domestic sectors in addition to small cap and foreign
As you can see, the returns for the broad sectors vary dramatically and can offer targeted opportunities: