Ride Market Cycles with a Sector Rotation ETF | Page 2 of 2 | ETF Trends

Underweight sectors include utilities 1.9%, basic materials and telecom services each at 2.4%.

The sector rotation strategy follows an investment manager’s decision to shift assets from one sector to another. Along with diversification qualities, the portfolio manager may seek to generate alpha, or outperformance, through timing economic cycles by exiting a sector that is looking fatigued and rotating into rising areas.

HUSE is up 4.0% over the past month, up 7.4% over the last three months and up 29.2% over the past year. In comparison, the S&P 500 gained 26.8% in the past year.

For more information on active ETFs, visit our actively managed ETFs category.