The best performer in the Basic Materials (U.S.) group this year is PYZ (PowerShares Dynamic Basic Materials) which has rallied 12.92%, followed by FXZ which is up 9.23%. Other alternatives in this sector space have lagged these two fundamental/quantitative approaches, as year to date performance is listed as follows: VAW (Vanguard Basic Materials, +7.80%), FBM (FocusShares Morningstar Basic Materials, +6.37%), RTM (Guggenheim S&P 500 Equal Weighted Basic Materials, +5.82%), and IYM (iShares DJ Basic Materials, +2.16%).
It is possible that the recent redemption activity in FXZ is reflective of profit taking into the recent rally, or it could also be rotation among institutional investors into another equity sector or sectors. Currently, top weighted holdings in FXZ are as follows: TKR (3.36%), ROC (3.20%), VAL (3.20%), CF (3.19%), and VMI (3.18%).
First Trust Materials AlphaDEX (NYSEArca: FXZ).